Solana meme coins have began the month nicely, hovering by double digits as crypto traders purchased the dip.
The overall market cap of all Solana (SOL) meme coins tracked by CoinGecko rose by greater than 4.5% to over $9.04 billion.
Official Trump (TRUMP) rose by 18.1%, whereas Dogwifhat (WIF), Pudgy Penguins (PENGU), ai16z (AI16Z), Fartcoin (FARTCOIN), and Peanut the Squirrel (PNUT) jumped by over 15% within the final 24 hours.
All of those tokens remain considerably under their all-time highs, whereas the market cap of all Solana meme coins is far decrease than the all-time excessive of $25 billion.
These tokens rebounded because the crypto and inventory market stabilized after this week’s crash. Bitcoin has jumped to over $85,000, whereas Ethereum has moved above $2,215.
Different large-cap coins rose by over 5% within the final 24 hours. Solana itself jumped by virtually 10%.
Different dangerous belongings additionally rebounded as traders purchased the dip. The Dow Jones index surged by over 600 factors, whereas the opposite blue-chip indices just like the S&P 500, Nasdaq 100, and Russell 2000 additionally rose by over 1%.
A possible catalyst for the continued Solana meme coin and shares rally is the rising optimism that the Federal Reserve will slash rates of interest sooner than anticipated.
Odds of fee cuts rose after a collection of weak financial information from the US and the upcoming tariffs on American imports.
Solana meme coins face key risks forward
Nonetheless, these Solana meme coins have three risks. First, there’s a danger that the rebound could also be a lifeless cat bounce, or DCB — a scenario the place a falling asset bounces again briefly as some traders purchase the dip after which resumes the downtrend.
Second, most whales and revenue leaders have offered their Solana meme coins. For instance, as proven under, the highest 15 most worthwhile Dogwifhat traders have offered 100% of their holdings. The identical occurred amongst most tokens, elevating considerations about rug pull scams within the Solana ecosystem.
Third, there’s a danger that the continued worry situation out there might have an effect on these tokens. The crypto worry and greed index has crashed to the worry zone of 25.
Equally, the broader worry and greed index tracked by CNN Cash has moved to the acute worry space of 18. Dangerous belongings like crypto and shares lag the market when traders are fearful.
A key supply of worry is that President Donald Trump pledged to impose tariffs on key allies like Canada and Mexico. Tariffs will result in excessive inflation and sluggish development within the U.S.
