BONK-driven bullish rally pulled Solana out of the negativity.
SOL saw a jump in DeFi activity, while NFT volumes fell.

Dog-themed token Bonk [BONK] gave the Solana [SOL] community more reasons to celebrate if it announced the creation of BonkDAO on January 14. The team behind BONK tried to capitalize on the buzz when it released the first memecoin in the SOL ecosystem.

In his one pagerBONK stated they wanted to shift focus from “toxic Alameda tokenomics,” which plagued Solana throughout the second half of 2022. And boy, they did not disappoint!

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Solana starts a new rally?

From CoinMarketCap, SOL was up 40% at the time of writing and was trading at $23.48, its highest price in more than two months. The bullish momentum seemed poised to push the price to pre-FTX levels.

This was in stark contrast to SOL’s downward spiral after the FTX debacle, in which it fell below $10, its worst performance in two years. The network received a lot of bad press because of its ties to the disgraced FTX founder Sam Bankman Friedwhich added to the negative sentiment.

The heavy lifting has undoubtedly been done by BONK, which has caught the attention of memecoin aficionados. Consequently, BONKs market cap reached over $60 million at the time of writing.

According to data of Dune Analytics, the number of users has exploded since the beginning of the year with over 100,000 cumulative BONK wallets registered at the time of writing.

Source: Dune analysis

DeFi activity is on the rise

The boost from BONK led to a jump in SOL’s Defi activity. According to data from DefiLlama, the number of protocols on the Solana chain increased up 13% from the previous day, even more than other networks want Ethereum [ETH] and Tron [TRX]. The total value locked (TVL) on the network also skyrocketed by 11%.

Source: DefiLlama

However, SOL’s NFT trading volume declined, which was counter to price, according to data from Santiment. After reaching $1.21 million on January 12, it was cut in half the next day and gradually reduced as of this writing. The social dominance showed the same behavior.

Source: Sentiment

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However, SOL investors may want to leave this short-term dip behind and bet on BONK’s popularity in the coming days. Regardless, memecoins have a history of cashing in on perceived popularity among community members.

This post Solana [SOL] walking the dog; Is this a winning chapter in the making?

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