Memecoins Have Hit The Solana Blockchain

As tokens like MoonLana and Samoyed Coin begin to gain attention, it becomes clear that Solana now has their own small but growing ecosystem of memecoins.

By
John Tunney
on
June 15, 2021
Category:
Breaking News

Memecoins and Solana

Memecoins are now popping up all throughout the Solana blockchain. Tokens like MoonLana have now begun to gain popularity among the crypto community, bolstering over 16k followers on their Twitter page. MoonLana claims to be Solana’s ultimate meme token. Yet MoonLana is not the only memetoken on the Solana blockchain. Samoyed Coin is another Solana memecoin that was launched roughly 2 months ago. The coin, similar to Dogecoin, has a cute fluffy white dog as their mascot that hopes to be Solana’s big community-driven memecoin. 


A Multi-Chain Trend

The trend of memecoins may be new to Solana, but they are far from new in the macro crypto ecosystem. Memecoins like Dogecoin or Shiba Inu have become incredibly popular on chains like Binance Smart Chain, Ethereum, and other chains run by smart contracts. Dogecoin currently bolsters a $41 billion market cap, according to CoinMarketCap. Shiba Inu (SHIB) currently has a $2.5 billion dollar market cap as shown by CoinMarketCap. As shown in the image below, of the 6 current trending coins on CoinMarketCap, at least 3 of them (Sanshu Inu, SafeMoon, Shiba Inu) are considered by many as memecoins. 


Source: CMC Trending Coins


The Peculiar Significance of Memecoins and Solana

As Solana begins to attract memecoin project development, one might wonder what this all signifies. Memecoins have become incredibly important in the DeFi industry. Some, like Dogecoin, maintain tremendous marketcaps, beating out some of the most valuable use-case projects in DeFi. Their popularity often seems to eclipse their utilitarian value, at least at a first glance.

Oddly enough however, memecoins have an incredible importance for a network. Memecoins are usually community driven, meaning they lack a real world use-case and are instead symbolic of a communities aspiration to communally drive value. Memecoin existence is largely predicated on a community's willingness to create value in the coin itself. For the Solana network, the beginning of memecoins could mean that their communities may start to transition over to Solana, bringing their pumping aspirations with them. This influx of users, often investors who joined the space specifically to buy these coins, has sharply driven market value on other chains.


Memecoins, Networks, Concerns

Although memecoins can bring tremendous capital to a network, memecoins can also adversely affect said network if not managed properly. The most notable example is the Ethereum network, which once enjoyed low trading fees with comparably high transaction speed. However, following the growth of memecoins on Ethereum, notably SHIB, it began to weigh down on the network and cause much higher transaction fees and slower block times. SHIB is now a top trending token with hundreds of thousands of holders. 

The Solana network, however, has been built out in a way in which this may not be a problem. Their scalability thanks to low fees and high speeds makes them a breeding ground for rapidly-traded tokens. In fact, Solana seems excited to bring memecoins on board their platform. Could a shift of capital that is still being directed toward memecoins trading on expensive networks begin to make their way to memecoins built on Solana? Time will tell, but the Solana network looks capable of handling absolutely any type of project in the DeFi space.

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.