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The slowdown of the meme coin craze has resulted in a significant blow for Solana (SOL). Since last year, SOL has been getting major support from the intense trading activity of the Solana-based meme coin. There was a big craze for coins like dogwifhat (WIF) and Bonk (BONK), two leading Solana meme coins in terms of market cap.
Seeing the success of these coins, other projects jumped on the bandwagon and resulted in a huge surge in trading volume on Solana. However, the market has witnessed a significant downturn in the past couple of months. It seems like the meme coin craze on Solana has ended after a broader correction on the crypto market.
The prices of WIF and BONK are down 22.1% and 12.9% in the last seven days, respectively. According to CoinGecko, the Solana meme market cap today is $5.57 billion, a significant decrease of 5.6% in the last 24 hours. Meme coins native to the Solana network have plunged in value, and some of them have been liquidated massively.
Solana sees major sentiment shift
Amid this lack of interest on the Solana meme coin market, SOL-based digital investment products have also struggled. According to CoinShares, these products witnessed outflows of $39 million over the last week. These outflows were the largest on record. CoinShares explained that this sharp decline is a direct result of the decreasing trading volumes of Solana meme coins, on which the network heavily relies.
The SOL price has also struggled on the market. It is currently trading at $141.43, after a decrease of 1.98% over the last 24 hours. The market cap of SOL is also down 1.99% during this time. These figures show the lack of momentum on the Solana market, a direct result of the deteriorating condition in the meme sector. It appears that the Solana meme coins will have to surge in order to push the SOL price to higher levels.