Altcoin

Solana to Avalanche: Tracking the memecoin frenzy across networks

The most popular meme token on Avalanche was COQ, having maintained a 40%-60% dominance.

Published

7 months ago

on

  • Avalanche’s daily memecoin transaction count hit 10k twice in March.
  • The memecoin frenzy subsided significantly on Avalanche, aligning with the drop in Solana’s numbers.

As the market remained awestruck by the scale of memecoin activity on networks such as Solana [SOL] and Base, another prominent layer-1 (L1) blockchain was quietly rising through the ranks.

Avalanche very much in the race

According to on-chain analyst Alex, Avalanche [AVAX]

witnessed significant speculation around these community coins in the last two months.

The Dune Analytics dashboard prepared by him showed daily transaction count topping 10,000 twice in March, with substantial volumes also seen in early April.

Source: Dune Analytics

Additionally, the number of users actively participating in these transactions also surged, ripping past 4,000 on two occasions in March. Note that this was also the time when Solana was exploding with memecoin frenzy.

The most popular among the meme tokens was Coq Inu [COQ], a chicken-themed coin. It has maintained a 40%-60% share of all meme currency transactions on the network.

In fact, at the peak of the frenzy in March, it had pumped more than 4x in a span of two weeks, AMBCrypto noted using CoinMarketCap data. At press time though, the token was nursing losses.

As seen in the graph above, the frenzy subsided significantly as April progresses, which aligned with the cool-off witnessed in the case of Solana.

The Avalanche foundation, the developer of the Avalanche chain, started making strategic investments in memecoins, seeing their upside potential. Apart from COQ, some of the other coins selected for investments were Kimbo (KIMBO) and Gecko (GEC).

Realistic or not, here’s AVAX market cap in BTC’s terms

How memecoins could help AVAX

Higher meme coin speculation could increase deflationary pressure on the ecosystem’s native token AVAX, as Avalanche burns all the revenue it generates from transaction fees.

Meanwhile, AVAX, was trading 1.5% lower at press time, a situation slightly better than most leading coins in the market.

Take a Survey: Chance to Win $500 USDT