Memecoin trading activity on the Solana network has been observed to increase, with a 46% rise in average daily volume recorded from April to May, coinciding with Bitcoin’s ongoing price recovery.
Based on data provided by Blockworks, the monthly trading volume for memecoins on the Solana blockchain had reached $58.7 billion by May 21, surpassing April’s total by more than $1 billion.
As of May 21, 64.6% of Solana’s total monthly trading volume had been attributed to memecoins, marking an increase from the 56% share recorded in April.
Notably, a strong correlation was observed between memecoin activity and Bitcoin surpassing the $100,000 mark on May 8, with daily trading volume steadily rising to nearly $4.2 billion. This marked the highest memecoin trading volume on Solana since February 15.
A surge in prices across the memecoin sector has been reflected by the recent growth in trading volume. Over the past month, memecoins were ranked as the fifth-best-performing category among 22 tracked crypto sectors, with an average increase of 59%, according to data published by Artemis.
Confidence Lags Behind Despite Surge in Trading Volume
Consistent growth has also been recorded in weekly trading volumes since Bitcoin reached a low on April 7. As of the week ending May 18, memecoin trading activity on a weekly basis had risen by an average of 16%.
Between May 12 and May 18, weekly trading volumes of Solana-based memecoins were recorded at nearly $24 billion — the highest level observed since the week concluding on February 16.
During the final week of April, 61.5% of the total trading volume on Solana was attributed to memecoins, marking the highest share recorded since the week ending February 16.
Although the market began to decline on February 1 following the signing of an executive order by President Donald Trump that formalized trade tariffs, a significant drop in Solana’s memecoin activity was observed only two weeks afterward.
On February 14, the LIBRA memecoin was endorsed by Argentinian President Javier Milei as a potential funding mechanism for small ventures across the country.
Although a market capitalization of $4.5 billion was reached by the token, its price was driven down by 95% just two days after it had been mentioned by President Milei.
A report released by Nansen a few days later revealed that more than $10 million in profits had been made by two wallets through the token. LIBRA was purchased by these addresses immediately after the endorsement by Milei and was sold precisely at the $4.55 peak.
Rumors of significant insider involvement in Solana’s token launches were sparked by the incident, resulting in a substantial decline in investor confidence that has not yet returned to pre-incident levels.
