Solana Memecoin’s Daily Trading Volume Jumps 46% in May, Reflecting Bitcoin’s Comeback
Trading in memecoins on the Solana network is mirroring Bitcoin’s recent resurgence, with a notable 46% surge in average daily trading volumes from April to May.
As of May 21, memecoin trading volume on Solana reached $58.7 billion, indicating an increase of over $1 billion compared to April’s figures.
Moreover, memecoins constituted 64.6% of the overall trading volume on Solana in May, a rise from 56% recorded in April.
A significant spike in memecoin trading occurred following Bitcoin’s rise above $100,000 on May 8, with volumes peaking at nearly $4.2 billion in a single day, marking the highest level for memecoins on Solana since February 15.
The growth in trading volume has coincided with price increases in the memecoin sector. Over the past month, memecoins have emerged as the fifth strongest sector within cryptocurrency, demonstrating an average increase of 59%, according to recent analysis.
Decreased Confidence Despite Increased Volume
Weekly trading volumes have shown steady growth since Bitcoin hit its low on April 7, with an average weekly increase of 16% for memecoins as of May 18.
From May 12 to May 18, the weekly trading volumes for Solana-based memecoins approached $24 billion, the highest figure observed since the week ending February 16.
In the final week of April, memecoins comprised 61.5% of all trading on Solana, the highest share since the week ending February 16.
Despite an overall market downturn starting on February 1, following an executive order by former President Donald Trump regarding trade tariffs, a significant drop in Solana’s memecoin activity didn’t occur until two weeks later.
On February 14, Argentinian President Javier Milei promoted the LIBRA memecoin for funding small businesses in the country.
Even though the token’s market capitalization soared to $4.5 billion, its value plummeted by 95% just two days after Milei’s endorsement.
Following this, analysis indicated that two wallets gained over $10 million from LIBRA by purchasing after Milei’s announcement and selling at its peak price of $4.55.
This event sparked speculation about significant insider trading during Solana’s token launches, leading to a marked decline in investor confidence, which has not yet rebounded to pre-incident levels.
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