Only Solana could handle a memecoin supercycle | Opinion

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As a seasoned researcher with over two decades of experience in various tech and financial sectors, I’ve witnessed the evolution of memes from a mere internet phenomenon to a powerful driving force in the crypto world. The rise of Solana (SOL) as the go-to platform for memecoins is nothing short of spectacular.

Memes are old, but they entered a new paradigm with crypto, and now, with the increased adoption of AI. Its scale and popularity are most apparent on Solana (SOL), which is the only layer-1 capable of enabling and sustaining the memecoin supercycle. 

In case you missed it, cryptocurrency follows a cardinal principle: avoiding the middle ground is key. Solana proved this by performing exceptionally well at both extremes. On one side, it showcased cutting-edge technical advancements comparable to genius minds (gigabrain). On the other hand, it also embraced the vibrant culture of hyper-degen memes.

With Goatseaus Maximus (GOAT), a meme on the Solana platform, now minting an AI crypto millionaire, it’s clear who will lead the charge for memecoins in mainstream adoption. The game has been won for some time now. The recent success of GOAT and FART COIN simply marks new milestones, paving the way alongside established Solana memes like the OG (Original Gangster) ones.

None other than Solana

Reddit user Watermelon_nuts shares an account of spending $600 on transaction fees when trading memecoins during Ethereum‘s (ETH) previous market surge. The high gas fees were so problematic that some users can only recall the excessive fees, while others emphasize the struggle of discovering a valuable investment amidst many options.

On Solana, transactions costs are usually minimal (less than a dollar per transaction), making it easier and more affordable for everyone to participate in trading meme coins, even during periods of high activity. This accessibility enabled smaller accounts to engage with meme coins, even those with balances under $100, thereby promoting inclusivity and democratizing the crypto space. At its core, Solana fosters a welcoming environment for all.

speed is a crucial factor in this field. Memecoin traders often prefer the 1-second chart due to the rapid pace at which things happen here, similar to Solana. Every minute sees the launch of numerous tokens on platforms like Pump.Fun, with both positive and negative outcomes. This short span can either make or break a trader’s success.

Solana’s Proof-of-History (PoH) consensus mechanism, along with other features designed to improve scalability, enables it to process multiple transactions in parallel, unlike Layer 1 networks that rely on mempools. This characteristic is crucial for facilitating high-speed trading of meme coins, as there’s no delay for confirmation. Opportunities don’t linger when using Solana.

As a passionate crypto investor, I’ve found myself drawn to Solana as it currently leads the way in L1 adoption for memecoins, handling an impressive 65K transactions per second. However, the real excitement lies ahead when the Firedancer upgrade kicks in, promising to supercharge its scalability by a whopping 10 times. The potential growth of Solana post this upgrade is something that truly ignites my curiosity and investment plans!

According to VanEck’s optimistic outlook, the price of Solana (SOL) could potentially reach $330 and account for half of Ethereum’s market cap. This prediction is largely attributed to the popularity of meme-based cryptocurrencies boosting adoption and the profitability of Layer 1 solutions on Solana. Meanwhile, Ethereum’s earnings have reportedly plunged by 99% since March 2024.

The memetic top

Meme coins built on the Solana platform experienced a significant increase of more than 30% up to the third quarter of 2024. Meanwhile, popular meme projects like Dogecoin (DOGE) and Pepe (PEPE), which are based on Ethereum, saw a decline of 5%.

The repeated growth phase propelled Solana’s Total Value Secured (TVS) to a peak of more than $6 billion over the past two years. Moreover, transactions on Decentralized Exchanges (DEX)—mainly involving meme tokens—increased by 43%, reaching beyond $11 billion, outperforming Ethereum and other Layer 1 networks.

Notably, among the popular ones, BONK, POPCAT, and WIF stand out as remarkable Solana memes that garnered exceptional popularity. However, what truly sets them apart is their ability to transcend simple speculation.

BONK effectively embodied the essence of the chain and became its ‘community hub’ on Solana.

Following the massive 12,000% surge in GOAT’s value within 24 hours, Solana’s memetic environment has taken things up a notch. While a typo cast doubt on Token Terminal’s AI-generated storyline—and justifiably so—the advent of AI and cryptocurrency memes marked an unprecedented milestone in the world of technology and finance.

Like it or not, both AI and crypto-memes are rapidly spreading mindviruses. Together, they dominate over 66% of the crypto mindshare. This is the first time something like this happened, but it surely won’t be the last.

In a perfect partnership, AI and memes flourish. They both require swiftness and a wide reach in dissemination. At present, Solana appears to be the sole stage where this synergy is being realized. Other platforms may imitate, but without a doubt, Solana leads the way unless another platform mirrors its success.

Second to the first 

Without a doubt, Ethereum was the pioneer in crypto memes. However, it wasn’t until around six to seven years later that the meme coin ecosystem saw a significant, almost exponential growth, and this took place on Solana.

The main factors driving this phenomenon are interdependent growth and shared success, along with the entertaining, adventurous, and innovative spirit that characterizes the Solana community.

Over the time period discussed, the Solana blockchain and its meme-oriented environment have thrived together. To illustrate this, let’s consider October 2024 specifically; during this month, Solana’s Total Value Locked (TVL) increased by 13% primarily due to memecoin trading. Meanwhile, Ethereum experienced minimal growth or even stagnation in the same period.

Both intellectual circles and non-traditional groups find Solana’s meme-based culture appealing, without being dismissive or condescending towards it. Instead of spreading fear, uncertainty, and doubt (FUD) or fretting over its simplicity, they seize what proves effective and strive to achieve success with it.

In a nutshell, Solana’s blend of innovation and user engagement is commendable. It offers both technical depth and an enjoyable experience, which seems to be the secret recipe for wide-scale acceptance.

It’s my hope that other blockchain networks grasp and fully utilize the potential of meme-based cryptocurrencies to foster overall growth in the crypto space. If not, it seems likely that Solana will continue to lead independently, given its significant advancement compared to others.

Brainchild

At the helm of memecoin Ponke, an individual known as Brainchild is a multifaceted professional boasting a wide range of expertise, encompassing marketing, sales, networking, product design, accounting, finance, and futures trading. As a systems thinker, he demonstrates exceptional ability in managing both the overall vision and minute details. In his tenure as the head of the legal and accounting teams at Helmet Studios, Brainchild promotes effortless teamwork among different departments. His broad skill set guarantees that innovative, user-centric solutions are effectively launched, particularly in the rapidly evolving meme coin sector.

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2024-11-20 15:10