Analysis: Meme coins and DeFi drive Solana’s price and on-chain metrics

Solana (SOL) prices have risen by more than 5% in the past 24 hours. Tristan Frizza, founder of Zeta Markets, said that the continued rise in SOL prices is mainly due to the Meme coin trading activity on the network. Frizza pointed out: "Meme coins have undoubtedly become an important driver of Solana network activity. In addition to speculation, this demonstrates Solana's ability to handle high transaction volumes and low fees, making it an ideal environment for retail users." To prove this point, Frizza pointed to Solana's on-chain indicators, such as TVL, which has exceeded $4.9 billion. Frizza added: "This shows that its network activity is strong and the number of active users is also growing. The number of monthly active addresses hit a new high of 41.65 million in May." In addition, according to the Bitfinex Alpha Weekly Report, Solana's DeFi ecosystem is experiencing growth, which is evident in lending, liquidity staking, and perpetual markets. Bitfinex analysts said: "Solana's resurgence is attributed to its advantages over other blockchains in terms of transaction throughput per second and scalability. Both Solana and Ethereum continue to grow, but Solana's rise is noteworthy. Although Solana ranks fourth behind Ethereum in terms of TVL, its on-chain DEX transaction volume ranks second, and more and more users are discovering the practicality of its blockchain." (The Block)