Solana Traders Are Leaving SOL To Invest in These New Tokens – Will They Provide 10x Returns in September?
The price of Solana ($SOL) is down by 5% this week as traders hammer the support just above $20.
The cryptocurrency is down a further 12% over the past fortnight as traders leave the ecosystem to invest in lesser-known alternatives that can provide significantly higher returns.
It seems traders are growing tired of the fleeting $SOL price, with its ecosystem on the brink of collapse as many Solana-based projects close their doors.
Instead, traders are investing a small portion of their portfolio in newly emerging projects to hedge their $SOL positions.
In particular, Sonik Coin ($SONIK) and Wall Street Memes ($WSM) are two projects that $SOL traders are flocking toward.
What you'll learn 👉
$SOL Price Continues to Struggle – Will It Hold $20?
Despite being in the top-10 ranked projects, the Solana ecosystem is starting to struggle as it battles to hold crucial support at $20.27.
The cryptocurrency had surged higher through June and July, starting from as low as $14.60 to reach as high as $32.
Unfortunately, it couldn’t overcome resistance at $28 and rolled over to trend lower in a descending price channel.
The market recently met support at the .5 Fib Retracement level, positioned at $20.27;
Looking ahead, the first level of support beneath $20.27 lies at $20.
This is followed by support at $19.50 (downside 1.414 Fib Extension), $18.52 (.618 Fib Extension), $18.00, and $17.60.
Added support lies at $16.05 and $14.60.
Unfortunately, the RSI shows that the bears are establishing momentum in the market, indicating that further downside potential is on the way.
Traders Leave Solana as Ecosystem Projects Close Doors and TVL Shrinks
Traders are starting to leave the Solana ecosystem as a handful of top-tier projects start to close their doors.
Projects on Solana have been closing their doors since January, after Friktion announced it was shutting down following the FTX and Alameda Research collapse in November 2022.
Recently, Clockwork, an automation tooling project, announced that it would be closing by Oct 31, 2023.
Clockwork raised over $4 million in seed funding last year, led by Multicoin Capital and Asymmetric.
Lead developer Nick Garfield made the announcement, citing that opportunity cost and limited commercial upside are two of the primary reasons the developers are stepping away from the protocol;
Ultimately the reason we are stepping away now is simple opportunity cost.
— Nick (@time_composer) August 27, 2023
We admittedly see limited commercial upside in continuing to develop the protocol, and have a growing personal interest to explore new opportunities.
5/
In addition to projects closing their doors, the Solana ecosystem has been witnessing a shrinking Total Value Locked (TVL) on its protocol for quite some time.
The TVL was around $1 billion in November 2022 but has since shrunk to the $310 million level today;
With the support behind the ecosystem continuing to shrink, it’s unsurprising that traders are starting to hedge their positions to protect themselves from further downside losses.
Where Are Traders Investing in After Leaving $SOL?
After leaving $SOL, traders are heading into one of the most active sectors in crypto – the meme coin market.
With meme coins being at the forefront of the industry this year, it’s hard to blame traders for jumping on the bandwagon, hoping to ride the wave higher.
In particular, traders are heading toward lesser-known projects to become early adopters, hoping to earn outsized returns for smaller investments.
Two projects keep appearing on Solana traders’ timelines: Sonik Coin ($SONIK) and Wall Street Memes ($WSM). Let’s take a look at them both.
Sonik Coin Raises $800,000 In Epic Presale – Just Five Days Left to Invest.
Sonik Coin ($SONIK) only started its presale in mid-August but has already managed to raise over $800,000 – during one of Bitcoin’s most turbulent months this year.
The fact that $SONIK has managed to gain so much traction during uncertain market conditions shows the increasing confidence of investors behind this project.
The project is a fun meme coin with unique art potential and the ability to go viral as it’s based on SEGA’s most beloved character – Sonic the Hedgehog.
Sonik is Sonic’s doppelganger, described as a moronic recreation of the iconic gaming character. Furthermore, instead of collecting rings like his handsome counterpart, Sonik collects $SONIK tokens to provide staking rewards to his community.
Sonik has an oddly shaped head with elongated features that make him fall over occasionally.
Despite this, Sonik wants to use his deceptive speed to turn $SONIK into the fastest-growing meme coin to reach a $100 million market cap.
The project is implementing a unique staking mechanism to achieve this goal.
Dubbed Stake-2-Speed, the staking mechanism will allow investors to earn a handsome APY on their investment while locking the majority of the tokens away in a staking contract.
As a result, experts believe that $SONIK has 10x potential because newcomers will struggle to buy tokens without paying higher prices – as most of the supply will be locked away.
In fact, one expert, Michael Wrubel, a YouTuber with over 300,000 subscribers on his channel, believes $SONIK is the next $1,000,000 memecoin;
The Stake-2-Speed mechanism is unique because it allows presale buyers to stake their tokens – even before the presale has finished.
As a result, 29 billion $SONIK have already been staked, providing an impressive 85% APY for presale buyers;
The tokenomics behind the project are also unique, with a total of 299,792,458,000 $SONIK in circulation – representing the speed of light, which is how fast $SONIK runs.
Of this supply, 50% is sold in the presale at a price of $0.000014. The presale and launch prices will be identical to ensure a fair and transparent launch for everybody involved.
Then, 40% of the supply is reserved to provide staking rewards for four years and 10% to add liquidity to DEXs to provide a smooth trading environment.
Overall, with a modest $2.1 million hard cap in the presale, the project has enormous growth potential to surge once the token launches.
Furthermore, with most of the tokens already locked into staking (40% is for staking rewards), there will be a huge supply shortage on open markets for new investors.
The project has already undergone a full contract audit through 0xGuard, adding an extra layer of credibility and security to the project.
With around half of the presale already snapped up, you’ll need to be quick to get positioned in $SONIK before it launches and starts to trend on popular platforms like DexTools.
Alternatively, you can face the pain of paying higher prices once the token trends.
Wall Street Memes Continues to Flourish Beyond $25 Million as FOMO Hits Peak.
Another project Solana traders are flocking toward is Wall Street Memes ($WSM) – one of the most sought-after meme coins in the space.
The FOMO is officially kicking in for $WSM as whales rush to get positioned in the presale before it ends.
It’s currently in the last stage of the presale, and the $WSM token is expected to launch on tier-1 exchanges in under the next thirty days.
Experts believe that Binance or OKX will rush to list the token due to the colossal cult-like following behind the project.
Exchanges will benefit from the huge trading volume generated by the community – especially considering that the presale has already raised well over $25 million.
The project is on a mission to make a mockery of the greedy Wall Street capitalist through meme-based humor on social media.
The memes have become so popular that they generate over 40 million monthly impressions, helping the project build a community of over 1.1 million followers.
Elon Musk has also been paying attention to the project after commenting on the memes on several occasions;
The interest from Elon Musk sparked a wave of FOMO from investors as they speculated about his involvement in the project.
They believe another Tweet from the Twitter/X CEO could send $WSM into a buying frenzy once the token launches on tier-1 exchanges.
As a result, whales are also experiencing the FOMO, with one buying $850,000 worth of $WSM in one purchase;
The confidence from whales lends credibility to the project as they tend only to make calculated calls that they’re confident will provide huge returns.
A handful of Twitter influencers also state that Wall Street Memes might become the next meme coin sensation. For example, Joe Parys Crypto – with over 380,000 subscribers – believes $WSM is primed for price growth once listed on major exchanges;
<iframe width=”1038″ height=”584″ src=”https://www.youtube.com/embed/skW4VvqOUa4″ title=”🔥IS THIS THE NEXT 100X MEME COIN?! (HONEST REVIEW OF WALL STREET MEMES!!!)” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” allowfullscreen></iframe>
In addition, CryptoWendy0 believes $WSM will be at the forefront of the next bull run;
Overall, Wall Street Memes has positioned itself as the next potential meme coin sensation that could provide returns similar to $PEPE.
Inventors are eager to get positioned in this project due to its meme-based humor, internet culture, and attention from Elon Musk.
The project has struck the perfect balance of hype and FOMO for a successful launch in September.
With less than a month before the launch, this is your last chance to become an early adopter before it explodes across the industry.
Disclaimer: We advise readers to do their own research before interacting with any featured companies. The information provided is not financial or legal advice. Neither CaptainAltcoin nor any third party recommends buying or selling any financial products. Investing in cryptoassets is high-risk; consider the potential for loss. CaptainAltcoin is not liable for any damages or losses from using or relying on this content.
