Possible Explanation for Solana’s $200 Surge Last Week
Solana, a layer-1 blockchain, has recently experienced a notable surge in value, surpassing $200. This surge can be attributed to several presales worth millions of dollars that took place within a span of just one week.
Solana has been garnering attention throughout the month, with its native coin, SOL, witnessing a 30% increase in value over the past week. The reason behind this surge is not hard to grasp, as the Solana network hosted multiple presales for memecoins and NFT projects, raising an impressive $122 million in SOL.
Research conducted by on-chain sleuth ZachXBT reveals that a number of memecoin and NFT projects conducted 27 presales to secure funding. Typically, presales involve selling tokens to investors at a discounted price. Investors participate in these projects with the expectation of reaping greater profits in the future, while the projects themselves gain additional capital to support their operations.
In this particular case, investors had to purchase SOL in order to take part in the presales. Zach’s analysis shows that more than 655,000 SOL coins, equivalent to $122.5 million, were invested in Solana-based crypto projects such as Slerf, Dekadente, KeroNFTs, and others. It’s worth noting that these presales began on March 12 and did not include crypto projects on other blockchains like Ethereum, BNB Chain, and Base.
Solana’s network engagement led to it being dubbed the “meme chain,” with over 8,600 memecoins being created in a single day. However, it is important to be cautious, as some of these projects may be rug pulls, designed to deceive unsuspecting users and siphon their funds. Even some projects that launched presales may have rugged users, as the token addresses became unavailable after the presale.
In the wake of its latest mainnet engagement, Solana’s native coin experienced a significant price surge, surpassing $208. Its market capitalization also soared, causing it to overtake BNB and become the fourth-largest cryptocurrency.
As of now, SOL is trading at $177, which represents an 11.5% decline in value over the past 24 hours.
Source: CoinStats
Tags: Memecoins, Solana
