Key Takeaways:
- Musk It (MUSKIT) surged 500% after Errol Musk, Elon Musk’s father, claimed ownership.
- The unexpected trading frenzy slowed down Solana’s network, causing congestion and higher fees.
- Investors are piling in, but some are eyeing Solana’s first Layer-2 solution, Solaxy, as a long-term fix.
Solana is feeling the heat again after a massive surge in trading activity from Musk It (MUSKIT), a meme coin that’s taken the market by storm.
The token, which had been flying under the radar since December 2024, shot up over 500% overnight, reaching a high of $0.69 before settling around $0.069. The reason? Errol Musk—father of Elon Musk—suddenly stepped in and claimed the project as his own.
🚨 NEW: Elon Musk’s father, Errol Musk aims to raise $150M to $200M with a memecoin project called ‘Musk It’ in plans to support his Musk Institute, per Fortune. pic.twitter.com/fzyvVjkXiF
— Cointelegraph (@Cointelegraph) January 31, 2025
According to Errol, Musk It is now part of the “Musk Institute,” a for-profit think tank focused on futuristic tech like flying vehicles. The announcement sent traders into a frenzy, pushing trading volume through the roof.
But with all the excitement came a familiar problem—Solana’s network couldn’t handle the rush. Transaction fees spiked, and congestion slowed the network down, frustrating users who were trying to get in on the action.
Will Musk It Keep Running, or Is a Pullback Coming?
Right now, MUSKIT is holding onto its gains, and traders are wondering whether it has more room to grow.
$MUSKIT is up 600% in a day 🚀🚀
MUSKIT is having a lot of hype that it is going to be supported by the Elon Musk family.
As per Cointelegraph, Errol Musk, father of #ElonMusk, plans to raise $200M through the @JustMuskIt ( #MUSKIT) memecoin to fund the Musk Institute. pic.twitter.com/O20iiai2AY
— Wise Advice (@wiseadvicesumit) January 31, 2025
- The 9-day and 50-day moving averages suggest the token is still in an uptrend.
- The Relative Strength Index (RSI) is at 63, meaning there’s strong demand, but it’s not yet in overbought territory.
- Bollinger Bands are widening, which usually signals more price movement ahead.
If the momentum keeps up, MUSKIT could test the next resistance at $0.045 and push toward $0.05. But if traders start cashing out profits, it could dip back to $0.035 before another potential run-up.
The big question now: Is this just a hype-driven pump, or does Musk It have real staying power?
Solana’s Congestion Problem Has Investors Looking for Alternatives
Musk It’s success once again highlights Solana’s biggest weakness—network congestion. With every meme coin craze, the blockchain struggles to keep up, leading some investors to look for alternatives.
Just looked carefully into $MELANIA’s launch—where a massive wave of purchases hammered Solana—their real TPS actually never spiked but degraded significantly, exposing Solana’s struggle with heavy network congestion.
Even worse, they didn’t acknowledge it as “downtime”,… pic.twitter.com/omRfaAtHtA
— Jin (@jinfizzbuzz) February 1, 2025
One of the most promising solutions is Solaxy (SOLX), Solana’s first Layer-2 scaling project:
- Solaxy is designed to reduce congestion and cut transaction fees, something Solana desperately needs.
- The project has already raised $16 million in its presale, showing strong early interest.
- It’s also building an Ethereum-Solana bridge, which could make cross-chain transactions easier.
🪙 @SOLAXYTOKEN ICO has surpassed $15 million, drawing investor interest as it aims to solve #Solana’s congestion issues and boost scalability.
👉More details: https://t.co/Ahb3085XMC#partnercontent pic.twitter.com/9uvV2LHE6K
— crypto.news (@cryptodotnew) January 31, 2025
With Solana repeatedly hitting network issues, projects like Solaxy could be the long-term fix that traders and developers are looking for.
What’s Next for Musk It and Solana?
The hype around Musk It isn’t slowing down yet, but traders know how quickly meme coins can rise—and fall.
- Will Musk It keep pumping, or is a big correction coming?
- Can Solana handle another wave of meme coin mania, or will it need Layer-2 help?
- Is this the start of a bigger trend of celebrity-backed tokens?
For now, all eyes are on MUSKIT, Solana, and the traders trying to ride the next big wave.