The Solana ecosystem, known for its speed and low transaction fees, experienced a rapid boom last December.
This boom was marked by the meme cryptocurrency phenomenon, with tokens like bonk (BONK) and Dogwifhat leading the pack with staggering price increases.
Bonk, in particular, enjoyed a dizzying rise, reaching over 1,000% increase in its value in a span of weeks, ensuring its listing on key platforms such as Binance and Coinbase.
However, enthusiasm peaked in December as bonk and other similar tokens saw a steep drop in their values.
Bonk, which had once peaked, saw a decline of more than 70%, and Dogwifhat, famous for its image of a dog in a hat, also suffered a drop of approximately 80% after generating huge profits for its first investors.
In the last 24 hours, Bonk (BONK) has seen a 6.96% drop in price, settling at $0.00001047, according to data provided by CoinMarketCap.
This recent decline adds to a broader downward trend, with a drop of 22.14% in the last 7 days.
With a market capitalization of $662,923,410, Bonk is positioned at number 89 in the cryptoasset classification, highlighting its relative situation among the various cryptocurrencies based on their capitalization.
Other Solana themed tokens, such as popcat and chipi, also fell up to 90% from their highs
The Solana ecosystem, fueled by these meme tokens, saw a phase of high activity with prices of tokens like SOL, Solana’s native cryptocurrency, peaking at nearly $120 from $38 in early November.
This explosion of interest led Solana to surpass Ethereum in terms of trading volume and network fees within a span of seven days.
However, as prices reached astronomical levels, investors began to take profits, resulting in a widespread decline in token values.
Furthermore, new launches on the network failed to maintain the initial momentum, and a shift of capital towards opportunities on other blockchains was observed.
This shift in the market reflects a correction following the initial meme cryptocurrency frenzy on Solana, showing a reassessment and search for more stable opportunities within and outside of this blockchain network.
