Ethereum
Solana Meme Coins Outperform Ethereum by 800% YTD – Top Gainers Revealed – TradingView News
In the first quarter of the year, Solana-based meme coins emerged as the favorites, outperforming Ethereum’s meme coin ecosystem and artificial intelligence (AI) tokens, according to a recent report from market data platform CoinMarketCap.
This shift in popularity signifies 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 Growth Chart
The CoinMarketCap report highlights that the Solana ecosystem has consistently led the growth chart over the past eight months, with over 20 new tokens introduced in the second quarter alone.
The Ethereum ecosystem followed closely with 14 new tokens, while derivatives and stablecoins saw relatively less growth with 5 and 4 new tokens, respectively. This increase in Solana-based token offerings indicates a growing interest in the network and its potential.
The Solana meme coin ecosystem, in particular, has gained momentum in terms of price, performance, and popularity since October 2023. While Ethereum remains the dominant blockchain, Solana’s growing prominence suggests a notable trend in the crypto space.
Interestingly, SOL memes have significantly outperformed ETH memes, delivering an average return of 8,469% compared to Ethereum’s 962%, as shown in the chart below.
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As “speculative capital” from other chains rushed to Solana, attracted by the explosive rallies of tokens like dogwifhat (WIF) and Bonk Inu (BONK), more meme coins saw price surges, attracting additional attention and capital.
The biggest gainers in the meme coin space were the feline characters MEW, POPCAT, and Book of Meme (MEME). These tokens outperformed even the most popular ones like WIF, BONK, Ethereum’s Pepe coin (PEPE), and Shiba Inu (SHIB).
It’s worth noting that political memes have also become a popular subcategory, with the top meme coin MAGA (TRUMP) gaining over 5,100% year-to-date, largely due to former President Donald Trump’s vocal support for crypto and acceptance of crypto for campaign donations.
Ethereum Tops Commission Revenue Rankings
Despite Solana’s significant gains, Ethereum continues to dominate the Layer 1 (L1) smart contract market, accounting for 62.11% of the top L1s. The report notes that Ethereum’s recent milestone was propelled by the SEC’s approval of Ethereum Spot ETFs.
However, Binance Smart Chain (BNB) and Solana have also gained ground, adding $42 billion and $18 billion to their market share among L1 networks. Solana currently leads with over 1.6 million daily active addresses, followed by BNB with 1 million active addresses.
In Q2, Ethereum saw record low gas fees, reaching levels not seen since 2020 due to the growing adoption of Layer 2 solutions and market excitement around Solana-based meme coins.
Despite accounting for 62% of the market cap of the major L1s, Ethereum accounted for 70% of the daily revenue, generating around $2.7 million. Solana ranked second with around $900,000 in daily revenue.
According to Lookonchain, Ethereum leads the fee revenue chart over the past year with $2.728 billion, followed by Bitcoin with $1.302 billion.
Other notable 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).
While both platforms have seen success in various financial metrics and growth charts, Solana’s native token, SOL, has significantly outperformed Ethereum’s ETH token.
At the current price, SOL is valued at $143.25, representing a 650% increase since the beginning of the year. ETH has seen a more modest 68% increase over the same period, currently trading at $3,310.
Featured image of DALL-E, chart from TradingView.com