Crypto:
30188
Bitcoin:
$67.868
% 0.86
BTC Dominance:
%54.4
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
Bitcoin:
$ 67.868
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

Solana Sees Price Jump Amid Memecoin Frenzy

Solana

Memecoin trade on Solana’s network is currently driving its ongoing price increase, said the founder of a distributed exchange.

Memecoins Propel Solana’s Activity Surge

According to Tristan Frizza, founder of Zeta Markets, memecoin trading activity on the Solana network is largely responsible for the value surge of the token. “Memecoins have unquestionably started to be a major Solana activity source. Beyond conjecture, this shows Solana’s capacity to manage large transaction volumes with low fees, therefore creating the ideal setting for retail users.” Tell the Block, Frizza advised.

Frizza used on-chain data such as Solana’s total value locked (TVL), which exceeded $4.9 billion, to show this. “This shows strong network activity; the number of active users has also been steadily rising; monthly active addresses in May reached a new all-time high of 41.65 million,” Frizza said.

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Based on The Block’s Price Page, Solana has gained by almost 5% in the previous 24 hours and is currently trading at $174.83 as of right now.

This week’s Bitfinex Alpha report indicates that the Solana DeFi ecosystem is expanding, as shown in its lending, liquid staking, and perpetual markets.

Solana’s benefits in terms of transactions per second throughput and scalability help to explain this comeback in this blockchain over others. Although both Solana and Ethereum are still rising, Solana is clearly rising while Ethereum is four places behind TVL in terms of decentralized exchange volumes by chain; more users find utility in Solana’s blockchain.” Bitfinex analysts observed.

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Ether Volatility Expected to Outpace Bitcoin

Ether is projected to show more price swings this month than bitcoin at the top of the rankings on the market capitalization for cryptocurrencies. QCP Capital analysts believe that traders expect further price swings for ether, maybe in relation to the forthcoming release of spot ether exchange-traded funds (ETFs), as ether options implied volatility (IV) is now higher than that for bitcoin.

With the options market clearly reflecting this, ether vols [IV] is currently trading 15% over bitcoin vols. “Bullishness is likely to continue as the market waits for the spot ether ETF to usher in new demand,” QCP Capital analysts said.

Andrew Melville, Head of Research for Block Scholes, noted that the price swings of ether have become more important since mid-May than those of bitcoin, highlighting the biggest difference in volatility between both tokens since the fall of the FTX in November 2022.

“With possible revisions to Ether ETF applications hanging, the higher premium ascribed to volatility represents more uncertainty, especially in the immediate term. Unlike the current surge, though, there isn’t as much demand for ether’s price to rise rapidly. With similar short-term positioning between both ether and bitcoin, the market attitude seems generally cautiously optimistic,” Melville added.

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