Solana network meme coins generate huge profits. So what is it ?

The Solana-based meme coin has shown notable gains recently. This increase comes as major cryptocurrencies like Bitcoin (BTC) are experiencing an overall contraction.

The narrative outperformed other cryptocurrencies. Therefore, members of the crypto community are expecting a meme-led rally.

How have Solana Mimi's top coins performed over the past 24 hours?

It should be noted that Dogwifhat (Wireless), the largest coin on Solana by market capitalization, is up 16.2% in the last 24 hours. POPCAT by 27.6%, Geo Budden (Boden) by 36%, SLERF of 14.2%, and (MAGNIFYING GLASS) of 17.6%, MANEKI By 16%.

These gains contrast with the broader crypto market, which is showing only a modest recovery. After falling below $57,000, Bitcoin has recovered slightly, as it is currently trading at $57,600. Meanwhile, the Solana meme sector saw its total market capitalization increase by 6.8%, which is now worth $6.9 billion.

Learn more: 4 best meme currencies in 2024 to invest

Cryptonary, a cryptocurrency analysis platform, highlighted the current market enthusiasm for meme coins.

"If your crypto isn't up at least 500% year to date or double digits today, you're in the wrong room. The Memecoin super cycle is in full swing." "to publish Cryptonary, attaching a performance screenshot of the meme coins.

However, the memetic currency talk has its drawbacks. Recent investigations by ZachXBT revealed that 12 Solana-based meme projects were abandoned, resulting in significant losses totaling $26.7 million.

Of these, “I LOVE THIS COIN (LIKE)” attracted nearly $7.8 million from investors before its value fell by more than 50%.

Earlier this week, another incident occurred with the meme coin, BONKKILLER, running a honeypot scam. Due to the “freezing power”, holders were unable to sell their tokens.

Thus, BONKKILLER claimed that the market capitalization reached $327 trillion, exceeding the combined GDP of each country. It should be noted that more than 90% of the pieces were controlled by their creator.

To complicate matters, a study by cybersecurity firm Blockaid found that at least... 50% off pre-sale tokens on the Solana blockchain From November 2023 to February 2024, it was harmful.

Learn more: Because the risk increases during holiday periods How to detect scams?

As the meme market continues to evolve, it serves as a stark reminder of the fine line between high rewards and high risk. Investors are advised to conduct thorough due diligence and be wary of the volatile nature of these digital assets. This market, although promising, requires careful consideration and an informed investment strategy.