The memecoin market has seen a large 30% drop in value, which is a result of issues surrounding scams and what was once great hype. As this space comes under more scrutiny, Solana is reporting minor gains, which is a bit of a surprise. Investors are very much in a risk-averse mode as we see a very volatile and also regulated environment.
Memecoin Market Grapples with Severe Drop
The memecoin sector has lost over 20% in recent days and over 30% in the past two months. We are seeing the fall of many fraudulent projects, which have left questions as to the real-world use of these coins. In 2024, we saw several identified scams that led to over $100 million in losses and hit investor confidence.
The total market cap of memecoins is now at about $44.56 billion, a monthly drop of 7.64%. We are also seeing trading volume go down by 1.90%, which is a sign of less investor interest. But experts think the memecoin market could see a recovery that may take it to a $1 trillion market cap in the future.
Solana Does Well in a Rough Market
In contrast to the rest of the market, Solana has seen minor gains. Its recent approval of spot-traded ETFS in Canada is a sign of growing institutional interest. Over the past 24 hours, Solana has only gone down by 2.5% compared to the broader crypto market, which is down 0.9%.
The price of Solana has been fluctuating around $127.32, which is a far cry from the high of $262.56. But the ETF approval in Canada may be an indicator of things to come. Also, Janover invested almost $10 million into Solana tokens, indicating long-term confidence in the asset.
Community and Regulator Backing for Solana
The Solana community is going to see greater financial support through the Solana Policy Institute, which is to do work in the regulatory space. This support may help Solana’s position as a leader in the crypto space. As we see growth in institutional interest, the ETF approval in Canada may be a precursor to similar moves in the U.S. market.
