In the race for programmable layer 1 dominance, Solana (SOL) has been high in the rankings lately. As previously reported, Solana has even taken down Ethereum (ETH) on many occasions relative to its decentralized exchange (DEX) volume. Like recently highlighted According to market analyst @WazzCrypto on X, approximately 92% of Solana DEX’s volume comes from meme coin trading.
In the race for programmable layer 1 dominance, Solana (SOL) has been high in the rankings lately. As previously reported, Solana has even taken down Ethereum (ETH) on many occasions relative to its decentralized exchange (DEX) volume. Like recently highlighted According to market analyst @WazzCrypto on X, approximately 92% of Solana DEX’s volume comes from meme coin trading.
Solana suffered the hype of meme coins
Meme coins are now a sensation in the digital currency ecosystem. In the top 20 most capitalized digital currencies, two meme coins appear, including Dogecoin (DOGE) and Shiba Inu (SHIB). While these two dominate the meme coin scene, Solana-based variants like BONK and dogwifhat (WIF) are also important tokens to watch out for.
Mushumir to the fullestIn particular, BONK and WIF are established in the market, but judging by their lower fees and high performance, Solana has seen a massive influx of new meme coins over the past year. This influx has caused a lot of damage to Solana, as it has helped generate fees.
A major limitation that drove some innovators out of the Ethereum ecosystem in search of new alternatives is its congestion issues. The first quarter of this year was a challenge for Solana with the explosive meme coin market.
With dedication and the right push, Solana developers finally released a major solution on the mainnet. However, it is worth noting that trust
Can Solana be compared to Ethereum?
According to data shared by Wazz, the dominant share of meme coins on Solana grew from 25% in November 2023 to the 90% seen today. This is a huge jump in an extremely large and unpredictable asset class.
Arman ShirinyanHigh-profile decentralized finance (DeFi) apps like Jito and Marinade Finance contribute the majority of transactions on Solana, so it remains unsustainable. Ethereum, on the other hand, gained approval for its underlying spot ETF in the US. As the race for dominance intensifies, Solana’s recovery strategy must decouple from meme coins for long-term sustainability. term.
