Analysis: Meme coins and DeFi drive the growth of Solana's price and on-chain metrics

In the past 24 hours, Solana (SOL) has risen by more than 5%. Tristan Frizza, founder of Zeta Markets, said that the continuous rise in SOL price is mainly due to the Meme coin trading activity on its network. Frizza pointed out: "Meme coins have undoubtedly become an important driving force for Solana's network activity. In addition to speculation, this demonstrates Solana's ability to handle high transaction volumes and low fees, making it an ideal environment for retail users." To prove this point, Frizza pointed out on-chain metrics of Solana such as TVL exceeding $4.9 billion. He added: "This shows that its network activity is strong and the number of active users is constantly increasing with a record high in May reaching 41.65 million monthly active addresses."

Furthermore, Solana's DeFi ecosystem is experiencing growth which is evident in lending, liquidity staking and perpetual markets. Analysts say: "Solana’s recovery can be attributed to its advantages over other blockchains in terms of transactions per second throughput and scalability. Both Solana and Ethereum are growing continuously but the rise of Solana deserves attention; although it ranks fourth behind Ethereum in terms of TVL , it ranks second in DEX trading volume on-chain with more and more users discovering the practicality of its blockchain."