Solana Replacing Ethereum As The Home Of Meme Coins?

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There is simply a increasing sentiment that minting and trading meme coins connected Ethereum is nary “longer viable” since Solana is emerging arsenic a imaginable alternative, looking astatine caller on-chain activity. This displacement successful dynamics is evident successful the caller occurrence of Solana-based meme coins similar BONK, which has captured important attraction wrong the cryptocurrency community.

Solana Dominating Meme Coin Activities

Taking X connected January 15, a user, Moon, highlighted this development, backing Solana arsenic the “ultimate retail chain” for meme coins. The crypto trader added that trading meme coins successful Ethereum doesn’t marque “sense.” 

Moon alludes to Ethereum’s precocious state fees and slower processing speeds done these remarks. Considering the quality of meme coins, these factors marque it impractical for their trading. Accordingly, enactment appears to beryllium migrating towards Solana, whose on-chain state fees are importantly lower.

 SOLUSDT connected  Binance, TradingViewSolana terms trending upward connected the regular illustration | Source: SOLUSDT connected Binance, TradingView

Technically, Solana’s scalability and affordability are well-suited for the volatile and rapidly evolving meme coin market. The platform’s quality to process transactions astatine a importantly higher complaint than Ethereum and its little transaction fees marque it an charismatic level for meme coin enthusiasts seeking faster and much cost-effective trades.

The increasing popularity of Solana arsenic a meme coin hub is evident successful the caller occurrence of BONK. To illustrate, the meme coin was 1 of the apical performers, gaining much than triple-digit gains erstwhile it was listed successful immoderate of the world’s largest crypto exchanges, Binance and Coinbase

BONK has gained the attraction of retail investors and meme coin enthusiasts, driven by its unsocial branding, assemblage engagement, and fig of integrations crossed DeFi protocols. In 2022, pursuing the clang of SOL and ecosystem tokens, BONK was distributed for escaped to affected users.

Beyond BONK, the archetypal Solana meme coin to find existent adoption, determination are different palmy tokens. According to Coin Gecko data connected January 15, Myro and Dogwifhat are 2 different meme coins commanding marketplace caps of implicit $136 cardinal and $350 million, respectively. 

 Coin GeckoTop Solana meme coins | Source: Coin Gecko

Ethereum Hosts Some Of The Largest Meme Coins By Market Cap

Still, Ethereum remains ascendant contempt the scaling challenges and comparatively higher state fees erstwhile transacting on-chain. Some of the world’s largest meme coins by marketplace cap, including Shiba Inu, PepeCoin (PEPE), and Floki Inu, are deployed connected Ethereum. When writing, PEPE and Shiba Inu had marketplace caps of implicit $510 cardinal and $5.6 billion, respectively.

In a caller interview, Larry Fink, the CEO of BlackRock, also said Ethereum, not Solana, volition beryllium the prime level for firms looking to tokenize real-world assets. To scale, Ethereum developers program to deploy off-chain solutions similar layer-2s and on-chain means similar Sharding.

Feature representation from Canva, illustration from TradingView

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