While the broader cryptocurrency market grapples with heavy losses, Solana meme coins are witnessing impressive growth, according to data from CoinGecko.
Among the standout performers, Dogwifhat (WIF), the largest meme coin on the Solana blockchain by market capitalization, has surged by 18% over the past 24 hours.
Popcat (POPCAT) has seen a remarkable rally of 61%, while Jeo Boden (BODEN) and Slerf (SLERF) gained 53% and 16% in price, respectively. Additionally, Wen (WEN) experienced a notable uptick of 28%.
This surge in meme coin prices starkly contrasts with the subdued performance of major cryptocurrencies.
Bitcoin, for instance, briefly dipped below $57,000 before recovering to trade around $59,000.
Despite the market downturn, the capitalization of the Solana meme coin sector has surged by 14.7% to reach $7.4 billion.
While there is enthusiasm surrounding meme coins, analysts caution investors about the risks associated with this market segment.
A recent investigation by crypto researcher ZachXBT revealed that 12 projects linked to Solana-based meme coins were abandoned, resulting in losses of $26.7 million for investors.
For instance, the I Like This Coin (LIKE) project, which initially raised $7.8 million, plummeted by more than half its initial value.
Eddy Lazzarin, the CTO of A16z, also expressed scepticism about meme coins, arguing that they detract from the long-term vision of cryptocurrencies and lack technical substance.