Public Chain Competition: Solana Launches Thousands of Meme Coins Daily, While Meme Coins on Other Chains Struggle to Thrive

Written by: Frank, PANews

Unlike previous narratives, Meme coins seem to have become the hottest topic in the early stages of this bull market. No matter how dismissive value investors were towards Meme coins before, they can no longer ignore the industry impact brought by Meme coins. As builders of public chain ecosystems, they seem to have found a new growth secret from Meme coins.

Solana Adds Nearly 10,000 Meme Coins Daily, with a 24-Hour Loss Probability of About 99.6%

With the explosion of this round of money influx, the number of newly added Meme coins on the Solana chain has reached an exaggerated level, although the previous average of 2,500 new coins daily was already the highest among public chains. On March 15, the number of coins issued on the Solana chain reached 9,943 in a single day, an increase of about 5.8 times compared to 1,699 on February 27.

PANews analyzed the new Meme coins released in the past 24 hours (March 18 - March 19). According to dexscreener data, 3,288 Meme coins were issued and established trading pairs on Solana in the past 24 hours, of which the number of tokens with a liquidity pool size of over $100,000 and a 24-hour increase of more than 10 times was 5, accounting for about 0.15%. This standard usually indicates that the trading pair has good liquidity and that this Meme coin can make early investors profitable.

When we lower the standard to a liquidity pool size of over $100,000 and a 24-hour increase of 1%, meaning tokens that can maintain a non-loss status within 24 hours, the number is 15, accounting for 0.4%.

From this perspective, if one randomly invests in Meme coins on Solana and holds them for 24 hours, the probability of losing money reaches 99.6%.

It must be said that although the stories of getting rich quickly with Meme coins seem to emerge every day, in fact, what we truly see may just be the survivors.

For example, on March 18, according to on-chain analyst @ai_9684xtpa, the address 2Znc4…pW6Cf accumulated a loss of $1.48 million within 11 hours of chasing and cutting Meme tokens. Among them, the loss in NOS tokens was $236,000, in SLERF it was $364,000, and in NAP it was $879,000. Recently, numerous cases of Solana addresses suffering huge losses from Meme tokens have been monitored.

BOME Boosts Solana's Active Wallet Addresses to Double, On-Chain Revenue Rises by 160%

Behind the wealth and zeroing of retail investors, Solana has become the biggest winner of this Meme craze.

The explosive popularity of the BOME coin has directly brought significant data changes to Solana. BOME was launched on February 14, and from February 15 to February 16, the number of active wallet addresses on Solana increased from 1.24 million to 2.42 million, an increase of 1.18 million, surging by 95%. On March 19, Solana's active address count ranked first.

In addition to the significant growth in the number of active wallets, other data across the entire Solana chain ecosystem has also seen tremendous improvement. The network fees on the Solana chain increased from 5,453 SOL to 14,389 SOL from March 12 to March 17, a rise of nearly 163%. With SOL priced at $200, the fee revenue on the Solana chain reached $2.87 million on March 17.

The growth of Meme coins has also propelled Solana's DEX to become the decentralized exchange with the highest market share. On March 19, coingecko data showed that among the top five DEXs, three were from the Solana chain, with market shares of 19.9% for Jupiter, 19.9% for Raydium, and 10.1% for Orca. These three DEXs account for about 49.9% of the DEX market.

Taking Raydium as an example, the hourly trading volume before March 15 was about $150 million, which increased to $2.5 billion per hour by March 19, growing more than 15 times.

However, the massive growth brought by BOME to Solana is not an isolated case. On December 14, 2023, the earliest Meme coin on Solana, BONK, rose by 84%, and on December 15, the number of active addresses increased from 550,000 to 1.08 million, directly driving the number of active addresses to nearly double.

Multiple Public Chains Attempt to Replicate the Meme Effect, with Uncertain Results

After Solana achieved great success with Meme coins, other public chains have gradually realized the potential network growth that Meme coins may bring, and some public chains have even personally launched MEME tokens.

On December 29, 2023, the Avalanche Foundation announced that it would promote the Culture Catalyst program by purchasing Meme coins.

On March 17, Aptos launched its official Meme coin $LME. On March 18, the Bitcoin Layer 2 public chain Ligo announced the launch of the Meme coin SOLIGO on Solana.

But can Meme coins really become the golden key for each public chain's data growth in this bull market?

Taking Avalanche as an example, on December 29, the Avalanche Foundation announced that it would promote the Culture Catalyst program by purchasing Meme coins. After the announcement, the number of contracts on the Avalanche chain increased from 630,000 to 660,000. Meanwhile, the number of active addresses on January 3 was 289,000, a 129% increase compared to 126,000 on December 29.

In fact, the address activity on Avalanche did not achieve sustained growth due to Meme coins afterward. Instead, after the Avalanche Foundation announced its holdings of five types of Meme coins, its active addresses declined for three consecutive days. Moreover, the prices of these Meme coins did not see significant increases due to the Avalanche Foundation's holdings.

The performance of the LME coin issued by Aptos has also been unsatisfactory; after a brief surge, it began to decline continuously. On March 19, the price had dropped to 0.00001318, down 93.6% from the peak of 0.0002075. The daily active address count on the chain also did not show significant increases.

It seems that the seeds of Meme coins do not sprout in every public chain's soil, which may be a question that each ecosystem needs to ponder.