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Solana (SOL) Gains 40% in a Week, but Was It From a Bonkers Pump and Dump?

2 mins
Updated by Geraint Price
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In Brief

  • Solana interest has been buoyed by BONK.
  • The meme coin has already dumped 50%.
  • SOL prices may struggle to gain more momentum.
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From zero to hero, Solana appears to have risen from the ashes. As a result, its native SOL token has outperformed its brethren posting the largest gain over the past week.

Crypto pundits and maxis had written Solana off following the collapse of parent company FTX in Nov. However, its bumper week cannot really be attributed to Solana itself, but to another meme token called BONK.

SOL price has surged more than 40% over the past seven days on the back of the latest meme coin frenzy. As reported by BeInCrypto, the first native doggy-themed coin on Solana has renewed interest in the ecosystem.

The BONK token and airdrop have been the talk of the week on crypto twitter. According to the official website, the token is little more than a Shiba Inu clone on Solana, spawned out of the FTX FUD fire.  

“The Bonk contributors were tired of toxic “Alameda” tokenomics and wanted to make a fun memecoin where everyone gets a fair shot.”

Mad or Bad?

However, it appears that BONK momentum is already waning. Since the beginning of the year, BONK prices surged 3,000% to hit an all-time high of $0.00000487 on Jan. 5.

It has already dumped 48% from that peak in a fall to $0.00000255 at the time of writing. Furthermore, the chart is printing a typical pump and dump pattern while analysts have predicted that it is over.

Solana aficionados looked on the bright side, commenting that the network actually stayed online this time. Solana has been plagued with performance and reliability woes over the past year or so. As a result, the network has suffered outages and degradation in seven separate months during 2022.  

Furthermore, Solana on-chain activity has slumped since the collapse of FTX. Transactions, address activity, and DeFi activity are all way down. Developers are also leaving the ecosystem in droves, so what does it spell for SOL prices?

Solana (SOL) Price Outlook  

SOL has surged a whopping 40% over the past week. It hit a three-week high of $14 on Jan. 4, but could not break resistance at that level.

As BONK dumps, SOL interest has faded resulting in a decline of 5.4% since that high. SOL is flat on the day, however, trading at $13.24 at the time of writing.

SOL/USD 1 month - BeInCrypto. BONK
SOL/USD 1 month – BeInCrypto

Without another BONK frenzy to keep it buoyed, there does not appear to be a lot of renewed interest in Solana.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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