Why the price of Solana (SOL) rose today

▲ Solana(SOL)

The value of Solana (SOL), the fifth-largest cryptocurrency by market capitalization, rose today due to high network activity and the strong performance of Solana-based meme (internet buzzword) coins, Cointelegraph reports.

Smart contract Solana's SOL price rose on Wednesday (local time) on the back of a modest recovery in the broader cryptocurrency market. The rebound in SOL is attributed to the rise in bitcoin after the US Consumer Price Index (CPI) for May came in softer than expected.

SOL's price has risen about 5% to $159 in the past 24 hours, according to data from Cointelegraph Market Pro and Coinbase, and is up 36% from a low of about $118 recorded five weeks ago.

"The rebound in the price of memecoins on the Solana network is also contributing to SOL's rise," Media said. Network activity has surged with major memecoins such as Dogwifhat, Bonk, Popcat, and Myro posting double-digit gains. This has led to an increase in the number of transactions, which has fueled demand for SOL."

The media explained.

"Solana's total locked-up deposits (TVL) have also increased, which has led to increased interest in the DeFi ecosystem," the media outlet analyzed, "All of these factors have combined to drive the price of SOL higher."

Solana's SOL coin, a strong competitor to Ethereum (ETH), is currently trading at $154.22 as of 9:24 a.m. ET on CoinMarketCap, up 3.34% from 24 hours ago.