Solana (SOL) emerged as a standout performer, buoyed by the launch of the Official Trump (TRUMP) meme coin on its blockchain. This surge helped Solana outperform rivals like Ethereum (ETH) but also propelled its total value locked (TVL) to an all-time high of $12 billion.

Solana Outpaces Ethereum Amid Memecoin Frenzy

On January 19, the price of Solana against Ethereum hit a record 0.0936 before stabilizing at 0.0769. The debut of TRUMP memecoin has triggered huge interest, which is evident in the surging price and trading volume of Solana. The Solana network has also seen a 46% increase in TVL over the past month, outpacing other Layer-1 blockchains such as Ethereum and BNB Smart Chain.

Solana (SOL) has been surging consistently since mid-October 2023. Source: Abdullah_Faraz/TradingView

“Eth has definitely been a loser in the recent meme coin wave, as many of the largest memecoins have come about on the Solana ecosystem,” said Le Shi, Managing Director at market-making firm Auros.

Surging Network Activity and TVL Growth

DefiLlama data revealed that Solana’s TVL soared by nearly 50% in just seven days, surpassing the $10 billion mark for the first time since November 2022. The resurgence in network activity was evident as daily transactions on Solana rose from 45,881 to 57,084 between January 17 and 19.

Solana’s TVL exceeds the $12 billion mark. Source: NXXN via X

“Several indicators were pointing to Solana’s outperformance two days ago, and that’s compounded with Trump’s memecoin launch and strategic reserve rumors,” noted crypto analyst Greeny, who predicted medium-term price targets of $370 and $425 for SOL.

Memecoins and Market Sentiment

TRUMP memecoin did reach a market capitalization of $15 billion during the height of its trading frenzy before facing a sharp correction. Analysts believe the buzz in the market was created because of this hype, combined with President Trump being pro-crypto. According to price prediction data from Polymarket, SOL has a 40%–50% chance of reaching $300 by the end of January.

Meanwhile, Ethereum has continued to cede ground, with the total value locked in its smart contracts shrinking 1.87% over the past month. The branding of Solana as an “Ethereum killer,” coupled with its notoriety as a launchpad for meme coins, has helped it hang in there with traders.

Outlook for Solana

The Solana (SOL) price is currently consolidating right below the $250 resistance. Source: Brave New Coin

Despite a slight downturn in the price of SOL, which has consolidated at the $250 mark after making an all-time high of $275, analysts still see the upside. A bull flag pattern in the price chart for Solana suggests more upward momentum may be in store, with some estimates as high as $360.

The phenomenon around meme coins has not only underlined the speculative nature of cryptos but also brought to light Solana’s growing allure among investors. Whether Solana can stick to its upward trajectory through markets’ ups and downs remains yet to be seen; its recent feats have marked a serious milestone in its fight with Ethereum, though.