Memecoins
Meme Coins Dominate Solana (SOL) DEX Volume, Here’s What That Means
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In the race for programmable Layer 1 dominance, Solana (SOL) was recently ranking high. As reported Earlier, Solana even toppled Ethereum (ETH) several times when it came to its decentralized exchange (DEX) volume. Like recently Underlines According to market analyst @WazzCrypto on X, approximately 92% of Solana DEX volume comes from meme coin trading.
Solana suffered from coin hype
Meme coins are now making a splash in the digital currency ecosystem. In the top 20 most capitalized digital currencies, two meme coins appear, including Dogecoin (DOGE) and Shiba Inu (SHIB). While these two dominate the coin sceneSolana-based variants like BONK and dogwifhat (WIF) are also major tokens to be reckoned with.
Notably, BONK and WIF are established in the market, but judging by its lower fees and high throughput, Solana has seen a massive influx of new meme coins over the past year. This influx did a lot of harm to Solana because it contributed to the generation of fees.
One of the major limitations that has caused some innovators to leave the Ethereum ecosystem in search of new alternatives is the problem of congestion. The first quarter of this year was difficult for Solana with the explosive meme coin market.
With dedication and good momentum, Solana developers have finally launched a major patch on mainnet. It should be noted, however, that the appeal
Can Solana compare to Ethereum?
According to data shared by Wazz, the dominant share of meme coins on Solana increased from 25% in November 2023 to the 90% observed today. This is a major breakthrough in an extremely large and unpredictable asset class.
Large-scale decentralized finance (DeFi) applications such as Jito and Marinade Finance contribute the bulk of transactions on Solana, so they remain unsustainable. Ethereum, on the other hand, has had its underlying spot ETF approved in the United States. the race for domination heats up, Solana’s catch-up strategy must decouple from meme coins for longer-term sustainability.
About the Author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money over traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been featured on Blockchain.news, Cryptonews, and Coingape, among others.