Rune creator Runetoshi launched a memecoin called Runes on Solana on January 26th. However, the memecoin saw a terrible trait while trading.
According to data, post the first few hours after the launch, the token’s market value soared to $28 million, but following a furious sell-off, it swiftly crashed, and its current value is $500k.
The crash comes at a time when Solana based memecoins have rather been successful in market trading. However, memecoins are popular enough for being extremely volatile, and the Runes memecoin demonstrates this exact phenomenon.
Runetoshi X (Previously Twitter) Has Been Suspended
Unexpectedly, Runetoshi’s X account was suspended, which sparked rumors regarding the project’s legitimacy. Investors are left wondering about the transparency and future of this much-discussed token as a result of Runes’ sharp surge and collapse, which also highlights the dangers of volatile memecoins.
Why Are Solana Based Memecoins Getting Popular?
The Runes meme coin suspension comes at a time when other Solana-based meme coins have been performing well in the industry.
As a blockchain platform that provides fast transactions and cheap costs, Solana has quickly become well-known and is now a popular choice for developers wishing to produce new currencies, such as memecoins.
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Internet culture and viral trends are frequently the source of these lighthearted, community-driven cryptocurrencies’ appeal; some, like Milady meme coin and Hawk Tuah meme coin, stand out for their concepts and imaginative backstories.
The market at present anticipates more projects and use cases to appear on the Solana ecosystem as the popularity of both the new and old Solana meme coins keeps increasing.
Memecoin Volatility Always An Issue
In the past, meme currencies have been a highly contentious area of blockchain technology. Proponents say they embody the dynamic, community-focused values of cryptocurrency, while critics contend they offer minimal benefits and damage the industry’s reputation as a whole by portraying it as unstable and unimportant.
Therefore, the fact that meme coins have emerged as the primary narrative behind the most recent cryptocurrency bull market may surprise many. Meme tokens were by far the most successful vertical in the business in 2024 Q1, with astounding average returns of 1316%.
They continued to move at a steady pace for the remainder of the year and frequently served as the impetus for market upswings.
However, the underlying fact that these coins are highly volatile remains intact in their trading.
Also Read: Crypto Markets Left Baffled After 76% of X Influencers Promoted Memecoins Now Worth Zero: Report