Has the Meme Coin Craze on the Solana Network Come to an End? Declines Have Begun!

• As the Solana price dropped by 10% to $185, the BOME price experienced a significant 50% correction at press time.
• After presenting a mega bull run, the BOME price seems to have entered a sharp correction with a further 50% decline in the last 24 hours.
• The BOME price had already corrected by 55% from its weekly high of $0.026, but it still trades with a 1000% gain on the weekly chart.

The Solana meme coin frenzy, which started with BOME, was shaken today with a steep drop: Memecoins crashed alongside SOL token price!

Current State of the Memecoin Ecosystem on the Solana Network

After showcasing strong performance in the overall crypto market, Solana and its meme coins experienced some retracement amidst a broader market correction. While the Solana price dropped by 10% to $185, the BOME price underwent a significant 50% correction at press time.

Following a mega bull run, the BOME price seems to have entered a sharp correction with a further 50% decline in the last 24 hours. At the time of writing, BOME is trading at $0.009813 and has a market capitalization of $541 million. It currently ranks as the 11th most traded cryptocurrency with a daily trading volume of $2,367,455,325.

The BOME price had already corrected by 55% from its weekly high of $0.026, but it still trades with a 1000% gain on the weekly chart. Significant sell-offs in the BOME price come from the leading holding address of BOME tokens, sundayfundday.sol. Over the past nine hours, the leading holder of BOME tokens sold another 340 million BOME tokens, earning 18,660 SOL.

The tokens were sold at an average price of $0.0107 per token, resulting in a profit of $3.62 million. Despite holding 900 million tokens due to a significant drop in the BOME token price, the holder’s assets decreased to $8.38 million.

According to on-chain data provider Santiment, BOME and Solana are currently the most discussed assets on social media platforms. This increased interest stems from their recent strong performances in the markets. The community views Solana and related meme coins as reliable alternatives for Ethereum-based projects.

What Are the Reasons Behind the Recent Collapse?

One of the main reasons behind the BOME price correction is a strong pullback in the overall crypto market ahead of the FOMC meeting. Additionally, after experiencing a significant increase in a very short period, this correction seems to be an expected occurrence.

Furthermore, as reported by COINOTAG on Monday, March 18, insider trading reports on BOME surfaced on Binance. The crypto exchange stated that it took action regarding these concerns and welcomed any evidence on the matter. On the other hand, significant declines were observed in other meme coins as well; PEPE, WIF, FLOKI, BONK, and others all dropped by nearly 20% within 24 hours.

The meme coin trading frenzy certainly aided Solana. Token Terminal reported that Solana captured $17.8 million in transaction fees in the past week during the development of meme coin on-chain trading, surpassing Bitcoin’s $17.5 million in fees. Solana’s daily fee capture amount exceeded $3 million for three consecutive days, consistently setting new all-time highs.