This Solana Memecoin Surged Over 1000% In A Week

Once again, a token on the Solana (SOL) network is in the spotlight. This time, it’s the memecoin Sharbi (SHARBI), which has been attracting a lot of attention this week after an impressive 1,184 percent increase in the past seven days.

With SHARBI leading the way, interest in Solana memecoins seems to be resurging. But there’s a catch.

Dubious memecoin in the spotlight

Despite SHARBI’s spectacular price increase, there is something strange going on with this token. The liquidity of SHARBI is only 0.13 percent of the total market cap of $4.57 million. In the past 24 hours, only $6,200 worth of SHARBI tokens have been traded. This means that, despite the huge price increase, there is hardly any trading taking place.

The low liquidity and trading volume indicate a weak fundamental for SHARBI. This makes the token particularly susceptible to extreme volatility, which should warn investors. In the worst case, SHARBI holders will be unable to sell their tokens due to a lack of liquidity.

SHARBI clearly illustrates how memecoins can deceive. Massive growth attracts inexperienced traders, unaware of the risks involved. Memecoins are inherently highly volatile and therefore risky. However, when a token like SHARBI has almost negligible liquidity, it is a clear sign of impending doom.

Unfortunately, this is typical for many memecoins. These tokens are often fundamentally weak and dependent on hype and social media stunts. It is therefore advisable not to just jump into a new memecoin without properly understanding the risks.

Solana price under pressure

While the hype surrounding Solana memecoins seems to be flaring up again, Solana’s price itself has taken a big hit in the past week. SOL’s price has dropped by more than 10 percent in seven days, making it one of the worst performing major cryptocurrencies.

Still, Solana’s rise this year is impressive. The Solana ecosystem is thriving, and Solana has emerged as a major player among layer-1 networks in recent years, making it a serious competitor to Ethereum (ETH).

The price of SOL, the native token of the Solana network, is also doing well. Despite the volatility of the past months, SOL seems to be consolidating around the current level of $140. In the long term, SOL seems to be laying a solid foundation for future growth. A first long-term target could be the top of the range around $185.

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