- Most Solana memecoins posted losses.
- Solana Founder warns investors about buying dubious presales.
- The memecoin mania was in full swing last week.
Solana’s ecosystem, recently boosted by the hype surrounding memecoins, now faces uncertainty as investors ponder the future of memecoins on the platform.
Tokens like DogWifHat (WIF), Bonk (BONK), and Slerf (SLERF) have experienced notable fluctuations in price following warnings from the Solana founder about the memecoin mania.
Solana Memecoins, SOL Take Hit
This week, major Solana memecoins saw heightened volatility and downward pressures on their price. On Wednesday, March 20, Dogwifhat (WIF) and Bonk (BONK) led the charge in the downturn, WIF dropped by 16.0%, over the week, down 37% from its all-time high of $3.53, trading at $2.2. BONK, on the other hand, dropped 24.0% over the last seven days.
Meanwhile, Slerf (SLERF) dropped 8.79% in the last 24 hours despite posting a weekly gain. On the other hand, Book of Meme (BOME), despite only starting to trade last week, is down 60% from its all-time high of $0.02805.
At the same time, the downturn in Solana memecoins hurt SOL as well. On Tuesday, March 19, Solana touched a low of $163, posting a loss of 15%, before recovering to $173. This correction came despite high volumes and was possibly due to concerns over the overheating memecoin market.
Is the Memecoin Party Over?
As Solana’s memecoins surged, discussions emerged about the dangers of FOMO-ing in. The Slerf token controversy, which saw the developer accidentally burn $10 million in SOL from the project’s liquidity pool, also highlighted the risks of the memecoin frenzy.
Following that, several influential figures highlighted the risks coming with excessive speculation. One of them was Solana founder Anatoly Yakovenko, who urged users not to pour massive amounts of money into memecoin presales.
His plea was in response to crypto investigator @zachxbt, who revealed that the latest 33 Solana presales raised $149,5 million, a massive volume of investment from the community.
However, with so much money invested, many traders are eager to keep the party going. In replies to Yakovenko’s Tweet, multiple traders disagreed with his sentiment, saying that how they trade is their business. While this may be so, the risk in the memecoin market remains, and traders should always be prepared for a a potential downturn.
On the Flipside
- Most major Solana memecoins are still up from where they were 30 days ago.
- Memecoins are extremely volatile, with their price heavily dependent on community engagement and market sentiment.
Why This Matters
While memecoins benefit from community engagement, their inherent risks and volatility necessitate a careful approach from investors.
Read more about Solana founder’s warning about memecoin presales:
Ready Solana Founder Sounds Alarm On Meme Presales Post SLERF Mishap
Read more about the controversial Solana memecoin Slerf:
