- Solana dethroned Ethereum as the top memecoin launchpad.
- Memecoins surged on Solana, with nearly half a million launched in May.
- One website was a major driver of Solana’s token boom.
Memecoins are once again in the spotlight, attracting attention from both traders and developers hoping to capitalize on the trend. Solana is among the best chains positioned to benefit, thanks to its low fees and ease of use.
Most recently, the chain overtook Ethereum in terms of the number of tokens generated on the chain. Specifically, in May, users generated almost half a million tokens on the chain Solana. This was largely due to one app that lets anyone create Solana tokens almost instantly.
Solana Users Generated 455,000 Tokens in May
In May, Solana saw a surge in new token creations, reaching a staggering figure of 455,000. This figure surpassed even the number of new tokens on Ethereum in that period, which stood at 177,000. At one point, the chain reached 20,000 new tokens per day.
A significant portion of the newly minted tokens were memecoins, with users trying to capitalize on the trend. The success of Solana-based memecoins like Dogwifhat, Bonk, and Book of Meme has attracted others to try and copy their model.
However, what made Solana the most attractive platform for memecoins was just how easy it was to launch tokens. Specifically, thanks to one website that makes creating tokens easier than ever.
Pump.fun Driving the Solana Token Craze
In recent months, the website Pump.fun gained traction, enabling anyone to create tokens with just a few clicks. This has significantly lowered the barrier to entry for new tokens, leading to a rapid explosion of new memecoins.
Moreover, Solana’s low fees also put it at an advantage when it comes to memecoins. While Ethereum smart contracts typically require paying gas fees amounting to about a few thousand dollars, not counting initial liquidity. On the other hand, deploying a smart contract on Pump.fun costs 0.02 SOL, equivalent to $3.3 at current prices.
With such significant differences in deployment cost, it is no wonder that so many memecoins are moving to Solana. Notably, political memecoins like Jeo Boden and Doland Tremp, which capitalized on the upcoming US elections, launched through this platform.
On the Flipside
- Amid an increased number of new memecoins, there is a heightened risk of rug pulls, hacks, and scams. Scammers can generate hundreds of memecoins per day, while inexperienced teams can fall victim to hacks.
- The sheer volume of new tokens raises concerns about market saturation. With so many tokens launching every day, only a minuscule number can realistically be successful.
Why This Matters
The ease of creating tokens on Solana, particularly through Pump.fun, coupled with low fees, has made it a breeding ground for memecoins. This new activity can boost the demand for SOL, further cementing its position as a DeFi platform.
Read more about the dark side of Solana memecoins:
Disastrous Memecoin Stunt Hospitalizes Solana Dev
Read more about Doge Ordinals:
Doge Ordinals Launch on EMV Thanks to Dogechain’s PawPort
Sourced from dailycoin.com.
Written by on 2024-06-04 20:30:00.
