Memecoins
The impact of memecoins on the growth of Solana
7:30 p.m. ▪ 4 min reading ▪ by Evans S.
Solana has carved out a special place for itself in the crypto sphere, notably thanks to an unexpected feature: memecoins. These digital tokens, often seen as jokes, are proving to be powerful tools for engagement and growth. Raj Gokal, co-founder of Solana, said this at the Consensus conference: user demand for memecoins is a key lever for attracting new participants.
Memecoins: catalysts for growth
Memecoins aren’t just gadgets. They became social and economic phenomena, propelling Solana to the forefront.
According to Gokal, the popularity of these tokens is mainly driven by user demand. By offering a fun and engaging way to participate in the crypto universe, memecoins intuitively onboard newcomers.
This dynamic has significantly increased on-chain activity, making Solana the blockchain of choice for speculation in these tokens.
Solana didn’t stop there. Blockchain took advantage of this frenzy by improving its transactional capabilities. Currently, Solana is capable of processing thousands, if not millions, of memecoin-related transactions.
Additionally, Alvin Kan, COO of Bitget Wallet reports:
Memecoin price volatility reflects the highly speculative nature typically present in the cryptocurrency market, which is largely dependent on market sentiment. Additionally, early traders who take profits quickly can trigger rapid, massive sell-offs, intensifying price declines if liquidity is insufficient and selling pressure in the market increases. Nonetheless, I think memecoins are a trend that could continue. They thrive primarily on community consensus, echoing the dynamics seen among these celebrities’ fans. These have considerable influence and very loyal fans, and projects can leverage this to launch high-potential memecoin projects.
Alvin Kan, COO of Bitget Wallet
Saga Mobile: Crypto Adoption Within Reach
The impact of memecoins is not limited to transactions. They also played a key role in the adoption of Solana’s mobile technologies.
Gokal mentioned the success of mobile crypto apps like StepN, the precursors to the Saga Mobile device. By integrating blockchain into an accessible device, Solana has made cryptocurrencies easier to use, paving the way for mass adoption.
Saga Mobile’s initial launch was modest, but the resurgence of cryptocurrencies, coupled with the popularity of memecoins, was a game-changer.
Sales exceeded 150,000 units, demonstrating that combining mobile technology and crypto is a winning strategy. Building on this success, Solana is already preparing the launch of a new model, planned for next year. This initiative marks a new step towards the democratization of blockchain.
Fire Dancer: a revolution in transaction speed
To support this rapid growth, Solana is banking on technological innovation. Gokal announced the development of Fire Dancer, a new validation game designed to increase transaction throughput by 1000.
With this initiative, Solana aims to achieve speeds of 5,000 to 10,000 transactions per second (TPS), far exceeding the current 1,053 TPS.
Scaling is a crucial issue to maintain Solana’s competitiveness. In theory, blockchain can reach speeds of 65,000 TPS, through continuous improvements.
Meanwhile, the Jito team is working on a third set of validators focused on maximum extractable value (MEV), further optimizing chain performance. These technological advancements strengthen Solana’s position as one of the most successful blockchains on the market.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped researching the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.