Solana Meme Coins Outperform Ethereum 800% YTD – Top Winners Revealed
July 04 2024 - 10:30AM
NEWSBTC
In the first quarter of the year, Solana-based meme coins have
emerged as the frontrunners, surpassing Ethereum’s meme coin
ecosystem and artificial intelligence (AI) tokens, according to a
recent report by market data platform CoinMarketCap. This
shift in popularity signifies a change in dynamics within the
cryptocurrency market, with meme coins gaining traction and
challenging previously dominant narratives such as smart contracts,
decentralized finance (DeFi), and non-fungible tokens (NFTs).
Solana Ecosystem Dominates Growth Chart The CoinMarketCap report
highlights that the Solana ecosystem has consistently topped the
growth chart for the past eight months, with over 20 new tokens
introduced in Q2 alone. Ethereum’s ecosystem followed closely
behind with 14 new tokens, while Derivatives and Stablecoins
witnessed relatively lesser growth with 5 and 4 new tokens,
respectively. This surge in Solana-based token offerings indicates
a growing interest in the network and its potential. Related
Reading: Toncoin Price Inches Closer To All-Time High – Will TON
Hit $8 This Week? Solana’s meme coin ecosystem, in particular, has
gained significant momentum in price performance and popularity
since October 2023. Although Ethereum remains the dominant
blockchain, Solana’s growing prominence suggests a noteworthy trend
in the crypto space. Interestingly, SOL memes have significantly
outperformed ETH memes, delivering an average return of 8,469%
compared to 962% for Ethereum, as seen in the chart below. As
“speculative capital” from other chains rushed into Solana,
attracted by the explosive rallies of tokens like dogwifhat (WIF)
and Bonk Inu (BONK), more meme coins experienced price surges,
attracting additional attention and capital. The top winners
in the meme coin space include the cat characters MEW, POPCAT, and
Book of Meme (MEME). These tokens have outperformed even the most
popular ones like WIF, BONK, Ethereum’s Pepe coin (PEPE), and Shiba
Inu (SHIB). Notably, political memes also emerged as a popular
subcategory, with the leading MAGA (TRUMP) meme coin gaining over
5100% year-to-date, largely due to vocal support for crypto from
former President Donald Trump and the acceptance of crypto for
campaign donations. Ethereum Tops Fee Income Rankings Despite
Solana’s significant gains, Ethereum continues to dominate the
Layer 1 (L1) smart contracts market, representing 62.11% of the
major L1s. The report notes that Ethereum’s recent milestone was
propelled by the SEC’s approval of Ethereum Spot ETFs.
However, Binance Smart Chain (BNB) and Solana have also gained
traction, adding $42 billion and $18 billion to their market share
among L1 networks. Solana currently leads with over 1.6 million
active daily addresses, followed by BNB with 1 million active
addresses. Related Reading: Avalanche On The Verge: Will AVAX Break
Out And Reach $65? In Q2, Ethereum experienced record low gas fees,
reaching levels not seen since 2020 due to the growing adoption of
Layer 2 solutions and the market excitement surrounding
Solana-based meme coins. Despite representing 62% of the
market cap among major L1s, Ethereum accounted for 70% of the daily
revenue, generating approximately $2.7 million. Solana ranked
second with around $900,000 in daily revenue. According to
Lookonchain, Ethereum topped the fee income rankings in the past
year with $2.728 billion, followed by Bitcoin with $1.302
billion. Other notable networks include Tron ($459.39
million), Solana ($241.29 million), Binance Smart Chain ($176.56
million), Avalanche ($68.83 million), zkSync Era ($59.77 million),
Optimism ($40.4 million), and Polygon ($23.91 million). Despite
both platforms experiencing success in various financial metrics
and growth charts, Solana’s native token, SOL, has significantly
outperformed Ethereum’s ETH token. As of the current trading
price, SOL is valued at $143.25, showcasing a year-to-date growth
of 650%. ETH has seen a more modest surge of 68% during the same
time frame, currently trading at $3,310. Featured image from
DALL-E, chart from TradingView.com
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