Solana Transforms XRP into 5th Largest Cryptocurrency Amid BONK Meme Coin Mania

Solana surpassed XRP to become the fifth-largest cryptocurrency after surging 60% in a month, fueled by Bonk-inspired meme coin mania.

Bonk (BONK), a Solana-based dog-themed meme coin, has exploded by more than 1,000% at some point in recent weeks and currently has a market capitalization of $1.2 billion. It is currently up 378% over the past month.

This has helped Solana’s market capitalization soar to $38.4 billion this year after soaring 650% in 12 months. XRP’s market capitalization is currently down to $33.3 billion after an 80% increase in price over the past year.

SOL tokens were trading at $90.21 at 12:27 PM ET, up nearly 11% in 24 hours.

Bonk Frenzy

The enthusiasm for Bonk means that traders often buy Solana as the underlying asset before switching to Bonk or other meme coins on the network. When they sell meme coins, it sparks more buying pressure on SOL.

Solana’s recent gains come despite increased selling pressure as the company pulled tokens from its holdings due to the FTX bankruptcy. FTX held approximately 59 million SOL tokens as of the end of August and is gradually offloading them to help repay creditors.

TradingView: SOL/USDT 4-hour chart

The Solana rally comes amid renewed enthusiasm for the SOL network.

Kaiko Research said that in addition to the frenzy surrounding Bonk and meme coins, SOL’s rally is also tied to renewed enthusiasm surrounding Solana, which “remains resilient despite the massive headwind triggered by the collapse of FTX.”

According to DeFiLlama, the total value locked (TVL) of the SOL blockchain has surpassed $1.22 billion, the highest level since November 2022.

Trading volume on Solana-based decentralized exchanges is increasing. Orca has seen a 46% increase in volume over the past 7 days, while Raydium has seen a 37% increase in volume over the past 7 days.

“BONK’s gains may not last forever, but the token’s rise highlights SOL’s near-miraculous recovery,” Kaiko concluded.

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