Memecoins
Solana to Avalanche: follow the memecoin frenzy on the networks
- Avalanche’s daily memecoin transaction count reached 10,000 twice in March.
- The memecoin frenzy has subsided significantly on Avalanche, aligning with Solana’s declining numbers.
While the market remained stunned by the scale of memecoin activity on networks such as Solana [SOL] and Base, another major layer 1 (L1) blockchain, was quietly climbing the ranks.
Avalanche very present in the race
According to on-chain analyst Alex, avalanche [AVAX] We have seen significant speculation surrounding these community coins over the past couple of months.
THE Dune analysis The dashboard he prepared shows that the number of daily transactions exceeded 10,000 twice in March, with substantial volumes also seen in early April.
Source: Dune analysis
Additionally, the number of users actively participating in these transactions has also increased, surpassing 4,000 twice in March. Note that this was also the time when Solana was exploding with memecoin frenzy.
The most popular among meme tokens was Inu Rooster [COQ], a chicken-themed piece. It has maintained a 40-60% share of all meme currency transactions on the network.
In fact, at the height of the frenzy in March, it had pumped more than 4 times in a span of two weeks, noted AMBCrypto using CoinMarketCap data. However, at press time, the symbol was nursing losses.
As the chart above shows, the frenzy subsided significantly as April progressed, matching the cooling observed in Solana’s case.
The Avalanche Foundation, developer of the Avalanche channel, has started creating strategic investments in memecoins, seeing their upside potential. Besides COQ, some of the other coins selected for investments were Kimbo (KIMBO) and Gecko (GEC).
Realistic or not, here it is Market capitalization of AVAX in BTC terms
How memecoins could help AVAX
Higher speculation on meme coins could increase deflationary pressure on the ecosystem’s native token AVAX, as Avalanche burns through all the revenue it generates through transaction fees.
Meanwhile, AVAX was trading 1.5% less at press time, a slightly better situation than most major coins on the market.