Solana-based Protocols Hit Record in Fees amid Meme Coin Frenzy

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As a seasoned blockchain analyst with over a decade of experience under my belt, I must say that the recent developments within Solana’s ecosystem have caught my attention like never before. The influx of meme coins, particularly those associated with beloved internet personalities such as Simon’s Cat, is nothing short of remarkable.

Decentralized applications built on the Solana platform have hit unprecedented highs in transaction fees and income, as noted by Patrick Scott, a finance expert specializing in decentralized systems, on November 18, 2024. Five out of the top ten protocols with the highest fees during the preceding day were running on Solana’s blockchain, indicating an increase in activity within its ecosystem. This surge can be attributed to meme coins regaining popularity and grabbing attention once more.

Over the last 24 hours, I’ve noticed an extraordinary surge in memecoins, and it seems that nearly half of the top 10 cryptocurrency protocols by transaction fees are currently thriving on Solana. This could either be a significant red flag indicating a market peak or a dramatic change in market dynamics, potentially signaling a shift towards Solana-based projects.

— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) November 17, 2024

Record-Breaking Fees for Solana’s Key Protocols

On November 17th, the automated market maker of Solana, Raydium, reached an unprecedented milestone by processing $11.79 million in transaction fees. This surpassed any previous record on the platform. Meanwhile, Jito, a protocol specializing in liquid staking, also reported significant earnings, with $7.89 million in fees, making it the third-highest daily performance according to DefiLlama.

On a record-breaking day, meme coin launchpad Pump.fun generated approximately $1.65 million in fees, ranking as one of their top seven revenue days. Meanwhile, the Telegram-based Solana trading bot, Photon, raked in an impressive $2.36 million in fees, marking one of its top five most profitable days.

The PNUT token skyrocketed significantly, increasing an impressive 2,700% over a two-week period and reaching a market cap of $2.4 billion by November 14th. Notable endorsements, particularly Elon Musk’s multiple promotions on his Twitter account (previously known as X), contributed substantially to its swift rise in value.

Should you attempt to eliminate me, you’ll find that I’ll grow stronger in ways beyond your comprehension.

— Elon Musk (@elonmusk) November 2, 2024

As a crypto investor, I’ve been closely watching Dogewhat and Solana’s movements lately. The listing of Dogewhat on Coinbase on November 15 has definitely given it a boost, pushing its price to a six-month high of $4.19 that day. This surge in activity within the meme coin sector, along with the increasing visibility of Solana’s ecosystem, seems to be significantly impacting the value of its native token, SOL. Currently, SOL is trading at around $242.6, and while it has lower volatility compared to Dogewhat (only 1.2% in the last 24 hours), it boasts a market cap of $115 billion. The volume for both coins within the last 24 hours stands at $1.21 billion for Dogewhat and $10.42 billion for SOL. It’s an exciting time to be in the crypto world as these developments continue to unfold!

Simon’s Cat Joins Solana Ecosystem

As a researcher, I’m excited to share that the meme coin associated with Simon’s Cat, CAT, is venturing onto the Solana blockchain. The aim here is to capture a broader trading demographic. Interestingly, holders on Solana are being offered early access, and a vault is providing discounted CAT tokens as an incentive. This has sparked significant interest, with deposits surpassing $240,000 so far.

The Simon’s Cat Vault is now operational, providing a reduced price of 0.00003951 BONK tokens for every $CAT in 12-month lockers. This offer will be available until tomorrow and has already exceeded its $100,000 goal. Those who deposit can withdraw their funds before the vault closes, making it an appealing option for early CAT investors.

Solana’s popularity as a meme coin hub has drawn CAT’s expansion from the BNB Chain. The blockchain’s high-speed, low-cost network appeals to retail traders. The Simon’s Cat team is excited about Solana’s exchange support, which will provide increased trading opportunities and liquidity for the growing meme coin.

Solana Gains Momentum, Nearing Record Highs

On November 18, Solana is currently being traded at around $242, experiencing a 1.90% increase over the past day. However, it remains 6.76% below its highest point of $260, which was reached in November 2021. The market value of Solana has significantly grown to approximately $112 billion, representing a 44% increase from its previous peak of $77 billion, achieved on November 6, 2021.

The main reasons for this growth are the resurgence in interest for meme-based cryptocurrencies and the continuous release of new tokens through an inflationary system that offers rewards. As per SolanaCompass, Solana’s current inflation rate is 4.9%, with a scheduled yearly decrease by 15%.

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2024-11-18 12:01