Bitget Research, the institutional analysis side of Bitget BGB/USD crypto exchange, has released a statement predicting the price of Solana SOL/USD to reach or exceed $160 to $180 in October and largely credits the bullish sentiment on memecoin activity.
What Happened: Ryan Lee, Chief Analyst at Bitget Research said, "Based on the current market sentiment, the development of the Solana ecosystem, and the involvement of major partners, SOL may reach or exceed the price range of $160 to $180 in October."
Lee pointed out that in 2024, SOL has been tracking with more stability than the greater crypto market.
"During market downturns, the $110 support level has been exceptionally strong, and during each rebound, SOL has been one of the strongest performing high-market-cap tokens."
Lee also credits some of Solana's strength on their place at the epicenter of the memecoin phenomenon.
"The Solana ecosystem’s meme sector has consistently been one of the most robust during rebounds. Market confidence in Solana as a whole has gradually increased over the past year."
The support from Franklin Templeton and Citibank is also a significant positive development. Franklin Templeton's plan to issue a mutual fund on the Solana network is particularly important for increasing Solana's appeal to institutional investors.
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"Meme coins have become an important barometer for the growing crypto market, with investors closely watching new mints and the anticipation for its growth,” Bitget CEO Gracy Chen said about the new addition of memecoins to the exchange’s offerings.
“Memecoins are different from tokens with high utility, they're more community oriented. At Bitget we follow a rigid due diligence process to shortlist memecoins for listings especially when recommendations come in from the community's side. Recently with Catizen CATI/USD, Hamster Kombat HMSTR/USD and some of the upcoming TON TON/USD-based memecoins there's a lot of activity in tap-to-earn games attracting audiences, way more than what the crypto space has seen before,” Chen commented.
While it remains hard to predict which meme coins will perform well in the long term, we generally look for tokens that optimize speculation demand and wealth effect. We conduct thorough market research calculating potential growth of memecoins, followed by a security check and final due diligence."
When asked how long Bitget expects the memecoin boom to continue, Lee responded:
"The popularity of meme coins is likely to last into the near future. The fact that top exchanges are now picking up interest is further fueling this meme coin boom. The recent recognition of some meme coins with low market caps but healthy communities marks a vote of confidence for these assets.
Just as the NFT boom of 2021 did not last forever, the meme coin season will fade in due course. However, until a new wealth-creation asset emerges, chances are high that meme coins will continue to command investors' interests."
What's Next: The future of meme coins will be a central topic at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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