Solana plunges 10% as investor interest shifts to Base chain meme coins, particularly Base Dawgz.
Solana (SOL), a prominent cryptocurrency known for its speed and efficiency, saw its price plummet by over 10%, raising concerns among investors and market analysts.
Trading around $150, several factors have been attributed to this sudden decline, including issues related to centralisation, reduced usage of decentralised applications (DApps), waning interest from derivatives traders and technical resistance levels.
This decline in Solana coincides with a growing interest in meme coins, particularly those on the Base chain, like Base Dawgz ($DAWGZ), which are capturing the attention of investors seeking high-growth opportunities.
Factors Contributing to Solana’s Decline
Solana has been facing criticism for its centralisation, which, while allowing for high-speed transactions, poses risks of vulnerability to attacks and outages.
Such centralisation concerns have affected investor confidence, contributing to the recent drop in price. Additionally, there has been a noticeable decrease in the use of DApps on the Solana network. These applications are vital for attracting users and increasing network activity and their declining use indicates a potential loss of interest or trust in the Solana ecosystem, further impacting SOL’s price.
The interest of derivatives traders in Solana has also decreased. Derivatives such as futures and options are often used by traders to speculate on price movements and reduced interest in these products suggests a bearish sentiment among traders who anticipate a continued drop in Solana’s price.
Moreover, Solana’s price has been rejected multiple times around the $190 resistance level, leading to a contraction of the Bollinger Bands—a technical analysis tool that indicates price volatility—and a subsequent drop in price.
While these factors have combined to erode confidence in Solana, technical improvements and renewed investor interest could potentially reverse this trend. However, forecasts remain uncertain and investors are advised to closely monitor the developments affecting Solana’s ecosystem.
Base Dawgz and the Rise of Base Chain Meme Coins
As Solana faces challenges, the Base chain, a Layer 2 solution on Ethereum, has been experiencing significant growth, attracting investor attention to meme coins like Base Dawgz.
In July alone, the Base chain saw a 56% growth, with accounts and transactions reaching new highs. Base Dawgz, a meme coin themed around a wingsuit-wearing Shiba Inu, has been capitalising on this momentum, raising $2.8 million in presale funds as it prepares for its official launch.
Base Dawgz: A New Player in the Meme Coin Arena
Base Dawgz has quickly become a standout project on the Base chain, leveraging the platform’s growth and the renewed interest in meme coins. Since its presale began, the value of $DAWGZ has appreciated by 60.5%, with the current price set at $0.007061 per token.
The presale is nearing its next phase, where prices are expected to rise, prompting a “now or never” situation for potential investors.
The success of Base Dawgz is closely tied to the growth of the Base chain, which has seen a surge in accounts and transactions. In just over a year, Base has become one of the top two Layer 2 chains in terms of total value locked(TVL), surpassing Ethereum’s TVL growth in July with a 10% increase compared to Ethereum’s 1.1% decline.
This rapid growth positions Base as a potential launchpad for meme coins, challenging Solana’s dominance in the space.
Base Dawgz: Multichain Functionality and Community Engagement
Base Dawgz is not limited to the Base chain; it utilises Wormhole and Portal Bridge Technology to operate across multiple blockchains, including Ethereum, Solana, Avalanche and BSC.
This multichain functionality allows Base Dawgz to inherit the strengths of each blockchain, such as Ethereum’s security and Solana’s faster transaction speeds, offering limitless possibilities for both investors and developers.
The project’s investment thesis highlights the potential for 100x gains and an annual percentage yield (APY) of 963% for stakers. Over 236 million $DAWGZ tokens have been staked already, showcasing strong investor interest. The presale success is further boosted by endorsements from popular YouTuber ClayBro, who has identified Base Dawgz as a promising meme coin investment.
Base Dawgz emphasizes community engagement through initiatives like the “Be Social for Airdrop” rewards program, which encourages users to create and share content about the project.
This approach ensures that the community is actively involved in the project’s success, while the “Refer and Earn” program rewards active community members for their contributions.
Potential Impact on the Market
The growing interest in Base Dawgz and the broader Base chain highlights a shift in investor sentiment towards meme coins with innovative features and strong community backing. This shift could signify a new phase in the cryptocurrency market, where meme coins on emerging chains like Base gain prominence over established players like Solana.
As Solana navigates its current challenges, the rise of Base Dawgz offers an alternative avenue for investors seeking high-growth opportunities. The combination of multichain functionality, community engagement and strong financial incentives positions Base Dawgz as a potential leader in the meme coin sector.
INVEST IN $DAWGZ EARLY BEFORE IT BECOMES NEXT 100X CRYPTO
The cryptocurrency market is witnessing a dynamic shift as Solana faces challenges and meme coins on the Base chain, like Base Dawgz, gain traction.
Solana’s recent price drop is attributed to concerns over centralisation, decreased DApp usage and waning interest from traders. Meanwhile, Base Dawgz is leveraging the growth of the Base chain to position itself as a promising investment, attracting attention with its innovative features and strong community involvement.
As the market continues to evolve, projects like Base Dawgz highlight the potential for meme coins to capture investor interest and drive growth in the cryptocurrency space. With the right combination of technology, community engagement and financial incentives, Base Dawgz could lead the next meme coin season, offering new opportunities for investors in a rapidly changing market.
