Solana Surges 3.22% as Memecoin Trading Volume Jumps 46%

Solana's latest price was $178.98, up 3.224% in the last 24 hours. This increase in price is accompanied by a surge in memecoin trading activity on the Solana network. Between April and May, the average daily trading volume for memecoins on Solana increased by 46%. This rise in activity is closely linked to the recovery of Bitcoin, which broke the $100,000 threshold on May 8. The correlation between Bitcoin's performance and memecoin activity on Solana is evident, as the daily trading volume for memecoins reached nearly $4.2 billion, the highest since February 15.

Memecoins have become a significant part of the trading volume on Solana. As of May 21, memecoins accounted for 64.6% of all monthly trading volume on Solana, up from 56% in April. This shift indicates a growing preference for memecoins among traders on the Solana network. The memecoin sector has been one of the best-performing sectors in the crypto market, rising 59% on average in the past month, according to Artemis data.

Despite the increased trading volume, there is a lingering lack of confidence among investors due to past incidents. In February, the LIBRA memecoin, endorsed by Argentinian president Javier Milei, saw its market cap reach $4.5 billion but crashed 95% two days later. A report by Nansen highlighted that two wallets profited over $10 million from the token, raising suspicions of insider activity. This incident has left a lasting impact on investor confidence, which has yet to fully recover.

Kraken, a prominent cryptocurrency exchange, is set to launch a new product called xStocks. This product will allow users in select countries outside the US to trade tokenized versions of major American stocks and ETFs 24/7. The offering includes well-known names such as Apple, Tesla, and Nvidia, with plans to expand the selection over time. The announcement comes after Kraken acquired NinjaTrader in February and subsequently expanded into stock trading.

xStocks is built in partnership with Backed and will tokenize popular US-listed assets as SPL tokens on the Solana network. Unlike conventional equity markets, xStocks will be tradable 24/7 through Kraken’s platform and compatible Solana wallets. This structure allows the tokenized assets to be used onchain, such as for collateral in decentralized applications, which is not possible through traditional brokerage systems.

Kraken’s Global Head of Consumer Mark Greenberg emphasized that xStocks aims to offer faster, cheaper, and more inclusive access to US equities. He criticized the current systems as slow, expensive, and geographically limited. This new product is expected to provide a more efficient and accessible way for users to engage with the stock market, leveraging the benefits of blockchain technology.