In the past 24 hours, decentralized applications (DApps) on the Solana network have seen record-breaking transaction fees and revenue, marking the strong comeback of the memecoin craze. According to data from DefiLlama, shared by decentralized finance (DeFi) analyst Patrick Scott on the social platform X on November 18, five out of the top ten protocols by fees in the last 24 hours were based on Solana.
One of the standout performers was Raydium, an automated market maker (AMM) on Solana. On November 17 alone, Raydium generated a staggering $11.31 million in transaction fees, marking its highest revenue day to date. Similarly, Jito, a liquid staking protocol also on Solana, achieved its third-highest day in terms of fees, accumulating $9.87 million in total.
Additionally, pump.fun, a memecoin launchpad, experienced its seventh-highest earning day, netting $1.65 million in fees. Meanwhile, Photon, a Telegram trading bot specializing in Solana memecoins, recorded its fifth-highest revenue day, raking in $2.36 million.
The Return of the Memecoin Mania and Its Impact on Solana
The surge in transaction fees across several Solana protocols coincided with the resurgence of memecoin speculation, which also triggered a significant price movement for SOL, Solana’s native token. At its peak, SOL exceeded $242, the highest level since November 2021.
Part of this explosive growth is linked to the emergence of the memecoin Peanut (PNUT), inspired by the image of a squirrel. The token skyrocketed with a 2700% increase over the past two weeks, reaching a market cap of $2.4 billion on November 14. This surge was fueled by multiple promotional posts by Elon Musk on X, highlighting Peanut alongside the launch of the Department of Government Efficiency.
Around the same time, the largest memecoin on Solana, Dogwifhat (WIF), was officially listed on the major U.S. cryptocurrency exchange Coinbase on November 15. This listing sent WIF to a new six-month high, briefly reaching $4.19 on the same day.
Another unexpected factor boosting tokens like Dogecoin (DOGE) and other memecoins was the establishment of the Department of Government Efficiency, a newly formed agency under President-elect Donald Trump. The agency’s acronym coincidentally matched that of Dogecoin (DOGE), driving a substantial rally, with DOGE surging over 140% in the past two weeks.
SOLANA Price Surge Despite Token Supply Inflation
Despite facing pressure from increased token issuance, Solana has continued to show strong upward momentum. Currently, SOL is trading around $234, just 8.5% shy of reclaiming its all-time high of $259.
Notably, Solana’s market capitalization has soared to $112 billion, up 44% from its previous peak of $77 billion back on November 6, 2021. This growth is primarily attributed to the increase in the number of SOL tokens issued as part of its inflationary model, which rewards stakers with newly minted tokens.
According to SolanaCompass, Solana’s current inflation rate stands at 4.9%, decreasing annually by 15%. This mechanism is designed to balance incentivizing staking activities while maintaining the token’s market value.
Overall, the return of memecoin hype is benefiting not just the meme tokens themselves but also driving significant growth for Solana-based DApps. Amid the current volatility in the crypto market, the fact that Solana protocols are hitting record-high transaction fees is a positive sign, indicating the ecosystem’s increasing appeal to investors.
Protocols like Raydium, Jito, and Photon are prime examples of how Solana’s DeFi projects are capitalizing on the bullish memecoin trend. This underscores the substantial potential of Solana to attract new capital flows and expand its operational scale.
Moreover, the listing of Dogwifhat on Coinbase is a crucial milestone that opens up further opportunities for other memecoins within the Solana ecosystem.
While memecoins are often associated with high volatility and risk, the remarkable gains achieved by tokens like PNUT and WIF in such a short timeframe highlight their lucrative potential. This is especially true when influential figures like Elon Musk are actively promoting them.
However, investors should exercise caution when venturing into the memecoin market, as rapid gains can also lead to swift corrections. Recent days have seen considerable market fluctuations, and this trend may continue in the coming weeks.
With rising transaction fees and growing investor participation, Solana is cementing its position as a leading blockchain platform for DApps, particularly amid the renewed memecoin frenzy.
Summary
- Raydium and Jito are two Solana-based protocols that garnered massive transaction fees in the past 24 hours.
- Memecoin Peanut (PNUT) surged over 2700% in two weeks, reaching a market cap of $2.4 billion.
- Dogwifhat (WIF) was listed on Coinbase, driving its price to new highs.
- Solana maintains upward momentum despite an inflation rate of 4.9%.
- Solana’s total market capitalization has now exceeded $112 billion.
The recent surge highlights Solana’s significant potential in supporting DeFi projects and memecoins, promising new opportunities for investors and developers worldwide.
Related news: Dogecoin Surpasses USDC, Taking the Crown as King of Memecoins
