Has Solana become a Meme chain? On-chain applications continue to support TVL

The Web3 mobile phone Saga officially launched by Solana Blockchain Network is priced at US$599. Although sales have been poor since its launch in May this year, in December, the official suddenly announced an airdrop of 30 million BONK tokens for each customer who purchased the phone. These tokens are worth US$700 upon receipt, allowing mobile phone buyers to not only recoup their capital but also make a profit.

In response to this stimulus, Saga mobile phones were sold at a premium of 500% on eBay, with the order directly priced at US$3,000.

Soga mobile phone’s bait BONK is also the trigger that has recently made the Solana chain active. This Meme coin with a dog image as its logo has risen from a maximum of 0.0000038 US dollars to 0.000034 US dollars in 30 days, a direct increase of nearly 10 times. It recently fell back to $0.000015, but still gained 290% during the month.

Low prices and high gains can best stimulate the enthusiasm of currency players. BONK successfully ignited the Meme craze on the Solana chain, and various animal-themed tokens such as WIF and SILLY were launched one after another. These tokens attracted a large influx of funds into the Solana chain, causing the total value of crypto assets on the chain (TVL) to increase to $1.475 billion within a month, an increase of 120%.

The active transactions on the Solana chain and the popularity of Meme have brought increased demand for Gas;SOL on the chain. Coupled with the favorable secondary market, the price of SOL exceeded US$100 within a month, soaring as high as US$113.27, an increase of 92.67%.

There are some voices that Solana is transforming into a meme chain, but if you carefully observe the transaction volume and project distribution of this chain, you will find that funds are still mainly flowing to DeFi infrastructure, including decentralized trading applications DEX , lending DApp, liquidity management and other applications. Additionally, a number of new infrastructure protocols have emerged. In addition, applications such as the Metaverse and games have also attracted some funds.

When the Solana chain regains attention, the Meme wealth effect plays an important role. However, the healthy development of Solana still depends on the construction of on-chain applications, and some new applications are emerging in this area.

Meme Coin Collective Disco

If you have a strong interest in crypto asset investment in the altcoin market, then you must have heard of the recent Silly Dragon. The project’s token is called SILLY, and $30 million has been traded in just two days on the decentralized trading application (DEX) Jupiter Swap since its launch on December 5. Currently, its price is $0.12, and when the secondary market first came online, there were still two digits before the decimal point.

The image of the silly dragon first appeared on the clothes of Solana co-founder Anatoly Yakovenko. This dress caused a stir at Solana's Breakpoint 2023 annual conference. A few months later, the creator of the Silly Dragon image anonymously launched the SILLY meme coin.

Although it is inspired by Anatoly’s clothes, SILLY is not the most popular Meme coin on the Solana chain. The real spark is BONK, which was created 1 year ago. After the zombie state lasted for nearly a year , from December 13th to 15th this year, this old Meme announced that it would officially launch a large-scale airdrop for the Solana ecosystem. One of the targets is the purchaser of the Web3 mobile Saga launched by Solana.

BONK price data collected by CoinGecko

During the BONK airdrop plan, the American crypto asset exchange Coinbase was the most keen and launched BONK on December 15. Within 24 hours, the price increased by 50%, reaching a maximum of 0.000014 US dollars, facilitating a transaction volume of over 2.35 billion US dollars.

The Meme craze on the Solana chain has just started. WIF (Dogwifhat), PONKE, Popcat, Eggdog, and Melon Dog all came out, just like an animal currency meeting. Among them, WIF was launched during Thanksgiving. The Meme character is a Shiba Inu wearing a knitted hat. The token was born on the Solana chain on December 18 with an initial market value of US$100 million. By December 24, the market value doubled. More than $220 million.

Meme coins gather on the Solana chain

During this period, the most direct impact of Meme fever on the Solana chain was to push up the chain’s encrypted asset lock Total warehouse value (TVL).

DefiLlama data shows that on December 1, the TVL of the Solana chain was US$670 million. By December 27, this number had become US$1.475 billion, an increase of 120.14%.

Also increasing simultaneously is the price of the Gas token SOL on the Solana chain, which has risen from US$59 on December 1 to a maximum of US$121, which has also doubled, and is now back around US$110.

New application airdrops surge

From a time perspective, the inflow of funds on the Solana chain is indeed in line with the Meme coin’s activeness during this period. Smart users want to obtain directly from the chain or within the application. Popular chips at lower prices. Some people wait for centralized exchanges to pay attention to these Memes, thereby gaining new increases; others directly receive application rewards by providing liquidity within DeFi applications on the chain.

These all drive the demand for Gas token SOL. But if you take a closer look, what can really support the activity of transactions on the Solana chain is still the infrastructure, which is an important carrier of funds and traffic.

Top 10 projects with 24-hour trading volume on the Solana chain on December 26

According to DappRadar data, judging from the 24-hour transaction volume, established projects in DeFi, games, metaverse, governance and other sectors on the Solana chain have maintained a very high level of activity, including Chainlink, Aave, Jito, Raydium, STEPN, Helium. These are the keys to ensuring the healthy development of Solana.

In the list of the Top 10 trading volume in 24 hours, there are actually only 3 Meme projects.

The decentralized oracle network ChainLink is almost the infrastructure of all blockchain on-chain infrastructure, because on-chain applications require such smart contracts to connect off-chain data. On December 26th alone, it was launched on Solana A transaction volume worth US$617 million was generated on the chain; lending application Aave ranked second with a transaction volume of US$213 million. The sneaker game STEPN and the metaverse game Star Atlas also have more than one million dollars in funding.

It is worth mentioning that Helium, the recently popular decentralized mobile device network provider DePIN project, is also on the top list of 24-hour transaction volume on the Sonala chain, contributing US$29.83 million. trading volume. Helium is the largest DePIN project on the chain.

It can be seen that although Meme coins are popular, the fund activity on the Solana chain is not only concentrated on Meme. All old players of Web3 Finance know that Meme is hot enough, but it will not last long.

Solana’s founding team is also thinking about what will happen after the Meme carnival.

I am very happy that BONK is doing well. Let the upcoming DeFi tokens also be a huge success. On November 20, the post of @R89Capital, a KOL in the crypto circle, attracted the attention of Solana co-founder Anatoly. He asked, do you think Meme coins will always be just Meme (a completely acceptable result)? Or do you think you can build a global development movement based on rewards for getting people to do some kind of "task-based" work? ”

And Placeholder VC partner Chris Burniske believes that if done correctly, crypto assets will allow valuable labor to be more closely integrated with the capital it creates. So, while Meme coins are interesting, I focus on using The latter situation has become a reality.

What Chris is concerned about is indeed happening. Some new DeFi applications and NFT projects are emerging and starting to encourage users to come and interact. On the chain, interactions tend to leave Traces, and these interaction records will be the interactors’ tickets for future application airdrop rewards.

These relatively early applications include:

New on the Solana chain Applications that have emerged

Among them, derivatives trading application Zeta Markets has established a Z-Score points system, lending application Kamino also has points settings, and AMM application Meteora has confirmed airdrops.

Meme frenzy has made the market Paying attention to Solana again, this chain has begun to recover from the shadow of the FTX thunderstorm, and traffic and funds are pouring into this chain again. The next test is whether more interesting applications can take over or even retain these Meme-driven projects. flow.

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