In the first quarter of the year, meme coins based on Solana have emerged as the frontrunners, surpassing Ethereum’s meme coin ecosystem and artificial intelligence (AI) tokens, according to the latest report of the market data platform CoinMarketCap.
This change in popularity means 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 the Growth Chart
CoinMarketCap report highlights that the Solana ecosystem has been steadily climbing the growth chart over the past eight months, with more than 20 new tokens launched in Q2 alone.
Ethereum’s ecosystem followed closely behind with 14 new tokens, while Derivatives and Stablecoins saw the least growth with 5 and 4 new tokens, respectively. This increase in Solana-based token offerings shows the growing interest in the network and its potential.
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Solana’s meme coin ecosystem, in particular, received a significant boost price performance and popularity as of October 2023. Although Ethereum remains the leading blockchain, Solana’s growing prominence suggests a significant trend in the crypto space.
Interestingly, SOL memes outperformed ETH memes, delivering an average return of 8,469% compared to Ethereum’s 962%, as shown in the chart below.
As “specified money” from other chains rushed into Solana, attracted by the firework gatherings of tokens like dogwifhat (WIF) and Bonk Inu (BONK), more meme coins experienced price increases, attracting more attention and more money.
Top winners in the meme currency space include the cat characters MEW, POPCAT, and Book of Meme (MEME). These tokens have worked even with the most popular ones like WIF, BONK, Pepe’s Ethereum coin (PEPE), and Shiba Inu (SHIB).
Notably, political memes also emerged as a popular sub-section, with the leading MAGA (TRUMP) coin gaining more than 5100% year to date, mainly due to the verbal support of crypto from former President Donald Trump and the adoption of crypto for campaign contributions. .
Ethereum Tops Fee Income Levels
Despite Solana’s significant gains, Ethereum continues to dominate Background 1 (L1) smart contracts market, representing 62.11% of major L1s. The report notes that Ethereum’s recent milestone was driven by the SEC’s approval of Ethereum Spot ETFs.
However, Binance Smart Chain (BNB) and Solana also gained traction, adding $42 billion and $18 billion to their market share among L1 networks. Solana is currently leading with over 1.6 million active addresses daily, followed by BNB with 1 million active addresses.
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In Q2, Ethereum experienced record low gas fees, reaching levels not seen since 2020 due to the growing adoption of gas. 2nd layer solutions and market excitement surrounding Solana-based meme coins.
Despite representing 62% of the market share among the major L1s, Ethereum accounts for 70% of daily revenue, generating approximately $2.7 million. Solana ranks second with an estimated $900,000 in daily revenue.
According to to Lookonchain, Ethereum tops the revenue estimates last year with $2.728 billion, followed by Bitcoin with $1.302 billion.
Other prominent 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 finding success on various financial metrics and growth charts, Solana’s native token, SOL, has outperformed Ethereum’s ETH token.
As of the current trading price, SOL is valued at $143.25, representing a year-to-date growth of 650%. ETH has seen a more modest surge of 68% over the same period, currently trading at $3,310.
Featured image from DALL-E, chart from TradingView.com
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