• Solana’s native token SOL soared 19% this week thanks to a frenzy around AI memecoins built on its blockchain
• The AI memecoin niche, blending artificial intelligence and cryptocurrencies derived from internet jokes, has sent daily active users and transaction fees on Solana to record highs
• Key drivers include the viral Goatseus Maximus (GOAT) memecoin as well as the rapid expansion of decentralized finance (DeFi) on Solana
Solana, the third most popular blockchain, has been on a tear the past few weeks thanks to AI memecoins – a new niche in crypto that blends artificial intelligence and cryptocurrencies derived from internet jokes. The run has sent Sol, the native-token of the Solana blockchain which many memecoins are built on, above $175 for the first time in two months.
Solana Outperforms the Broader Crypto Market
While the broader crypto market continues to consolidate this week following early October lows, Solana’s gains have outpaced those of the largest cryptocurrencies. Sol is outperforming Bitcoin, Ethereum, XRP, and others included in the CoinDesk 20 Index. Solana is up 19% over the last seven days, while in contrast, Bitcoin is up 0.8% and Ethereum and XRP are down 3%.
This month’s price action from Solana, which touts itself as an alternative to Ethereum’s high fees and slow transaction rates, has brought SOL to a new all-time high against Ethereum, with 1 Sol equivalent to 0.007 Ethereum and the highest price against Bitcoin since August.
AI Memecoins Captivate the Crypto Community
AI memecoins have captivated the crypto community since Goatseus Maximus, a new memecoin, sparked conversation about the intersection of the two technologies. The frenzy has sent daily active users on the Solana blockchain to a record high of almost 9 million and caused transaction fees on Wednesday to reach a high of $4.5 million, according to DeFiLlama data.
Goatseus Maximus, or GOAT, was created on October 10 by an anonymous developer known as Pumpfun and gained massive attention when Marc Andreessen-backed AI bot Truth Terminal endorsed it on X.
The token, founded on the AI bot’s fixation with goat memes, has reached a market cap of $722 million since its creation two weeks ago and triggered a flurry of new AI-created memecoins.
The sector has reached a market cap of over $2 billion, up 24% in the last day, according to CoinGecko. Other Solana-based memecoins are up in the frenzy as well. Popcat and cat in a dog’s world are both up over 20% this week.
The Rapid Expansion of DeFi on Solana
Another factor in Solana’s recent run may be the ongoing rapid expansion of decentralized finance, or DeFi.
Solana is up more than 450% this year. Since January, the total value locked on Solana—the U.S. dollar value of digital assets staked on a blockchain through DeFi—has almost quadrupled to $69 billion.
Conclusion
Solana continues to gain momentum, driven by new innovations like AI memecoins and the expansion of DeFi. As the blockchain carves out a unique niche for itself, SOL is reaching new highs against top cryptocurrencies like Ethereum. The coming weeks may determine whether the rally has legs to continue.
