SOL Rebounds as Meme Coin Activity Drives DEX Volume and Institutional Interest

• Solana's market capitalization increased by 14.1% week-over-week to $19.3 billion, marking a recovery after a month of declines.
• Meme coins like BONK and PUMP saw sharp price increases, driven by social media hype and burn events.
• On-chain metrics such as TVL, daily transactions, and DEX trading volumes also rose in the Solana ecosystem.

The surge in Solana DEX trading volume is primarily driven by meme coin activity. Meme coin trading has led to a 25% week-over-week increase in DEX volume. This increase is directly correlated with higher demand for SOL, as every trade incurs a fee paid in the native token.

Institutional interest in Solana is rising, with Morgan Stanley filing for a Solana ETF. Over $16 million flowed into Solana spot ETFs on Monday alone, marking the largest single-day inflow since mid-December. Total assets in these ETFs now exceed $1 billion, indicating growing institutional exposure.

What Drives the Current Surge in Solana's Market Capitalization?

The current surge in Solana's market capitalization is largely driven by increased trading activity of meme coins. Meme coins like BONK and PUMP are seeing significant price increases due to social media hype and burn events. This has led to a 14.1% week-over-week growth in Solana's market capitalization.

The rise in DEX volume is a key factor in this growth. Meme coin trading has caused a 25% week-over-week increase in DEX volume. This increase is directly correlated with higher demand for SOL, as every trade incurs a fee paid in the native token.

What Are the Risks Associated With Meme Coin Trading on Solana?

Meme coin trading on Solana comes with several risks. The study found that 82.8% of high-performing meme coins exhibit signs of artificial growth through tactics like wash trading and liquidity pool-based price inflation. These manipulations often precede profit extraction schemes like rug pulls and pump and dump scams.

Additionally, meme coins are highly speculative and volatile. The guide recommends starting with small investments due to the high volatility and speculative nature of meme coins. It is also recommended to check liquidity pool sizes before trading to mitigate risks.

How Does Solana Compare to Other Blockchains in the DeFi Space?

Solana is outperforming other blockchains in the DeFi space. In 2025, Solana processed 33.1 billion transactions, a 28% year-over-year increase. The decentralized exchange (DEX) volume on Solana reached $1.57 trillion, surpassing Ethereum's $946 billion.

Solana also saw a 50% increase in new wallets and a 41% increase in active developers. The fee stability ratio of 743 signals lower volatility in network fees. The company's strategy includes staking SOL, operating validator infrastructure, and allocating its principal reserve to Solana.