As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless market shifts and trends that have come and gone. However, the recent surge of Solana over Ethereum in weekly on-chain trading volumes, driven by meme coin activity, is indeed intriguing.
In the past week, Solana has outpaced Ethereum in terms of on-chain trade volume, mainly due to a significant increase in transactions involving meme coins. Currently, around 40% of Solana’s trading environment is attributed to these popular, humorous digital assets.
The world of cryptocurrencies is undergoing change, as Solana has surpassed Ethereum in weekly trading volume on the blockchain. According to a report by Wintermute, Solana’s trading volume increased by 50%, reaching $51 billion, whereas Ethereum reached $46 billion. This indicates that the crypto market is gradually bouncing back from its recent lows.
— Wintermute (@wintermute_t) October 15, 2024
It seems that the surge in activity is largely due to the growth of meme coins, making up about 40% of Solana’s trading actions. This surge is largely attributed to pump.fun, a marketplace for meme coins, which contributes approximately 35% to Solana’s total decentralized exchange volume. However, despite the widespread excitement, only a small fraction (around 0.76%) of pump.fun wallets have yielded $1,000 or more, as cryptonews previously revealed in an in-depth investigation.
An influx of speculative trading is causing a significant surge in the creation of tokens on the network, with an impressive 86% market dominance – a rise from 60% in early September – as pointed out by Wintermute. Moreover, the weekly production of tokens has soared from 45,000 to a staggering 110,000.
Meme coins have been particularly successful compared to other areas, with the GMCI’s Meme Index increasing by 34% in September, only slightly behind the 39% rise of the GMAI Index. Notably, over the course of the year, the index has skyrocketed by 140%, significantly outpacing the 83% growth of the GMAI Index, according to Wintermute’s observations.
Experts predict that increased meme coin activity on Solana might spark expansion throughout the whole sector, hinting at a possible surge as the U.S. election nears, which could bring turbulence to the current tranquil crypto markets.
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2024-10-15 13:16