Solana (SOL) has reached a significant milestone, overtaking its competitors to become the leading blockchain in decentralized exchange (DEX) volume. The surge in SOL’s price, which has risen 8% to $135 at press time, can be attributed to the growing popularity of meme tokens on the Solana network.

Three notable memecoins, GIGA, POPCAT, and WIF, have caught the attention of institutional investors, driving the rally. These tokens have not only contributed to Solana’s dominance in DEX volume but also played a crucial role in mitigating risks associated with market volatility.

Solana’s DEX Volume Dominance

Solana has surpassed its competitors, including Binance Coin (BNB) and Ethereum (ETH), to become the leading blockchain in DEX volume. With a staggering 378% difference, Solana boasts $3.2 million in volume compared to Ethereum’s $670K. Moreover, Solana is the only chain with a DEX trader count exceeding 1,000,000.

Meme Tokens Drive Solana’s Growth

Meme tokens and low-cap tokens have dominated the buy volume on Solana, peaking at $2 billion in mid-March. This surge coincided with a bull rally that pushed SOL above the $200 mark. Although the buy volume has dropped roughly 94% to $110 million since then, the dominance of these tokens has persisted.

Memecoins have become a hedge against Bitcoin’s volatility, attracting both institutional and retail traders. A fresh trend is emerging, with Solana memecoins driving high holder decentralization. Some notable meme tokens are achieving a more equitable distribution among holders, with each significant holder owning around 0.1% of the total supply.

Reduced Monopoly Mitigates Risk

The stable memecoins on Solana continue to grow steadily among diamond hands, as evidenced by the chart below. GIGA leads the chart with 10.8 million holders, followed closely by POPCAT with 10.4 million. The difference in high holder count is minimal, marking a negligible 3% difference.

The even distribution of institutional holdings reduces centralization risk, combating disproportionate influence on the token price. Furthermore, a decentralized distribution can attract a broader range of participants, spiking SOL’s price.

Memecoins’ Impact on SOL

Memecoins have a significant impact on SOL, with some traders using them as a low-cost alternative, while others commit to them with long-term faith. Holders have found Solana memecoins to be a viable long-term investment, with BONK leading weekly activity and WIF following.

Given the volatility of these memecoins and their stable user base, reduced monopoly helps SOL mitigate risks during market downturns, particularly those caused by BTC swings.

Overall, if the bears push the market down, SOL faces less risk from its memecoin hub, as high holders are less likely to sell, reducing volatility. The growing popularity of meme tokens on Solana has not only contributed to its dominance in DEX volume but also provided a hedge against market volatility.