Solana Blockchain Beats Ethereum on Popularity Quotient, Memecoins Contribute

Mar22,2024



Crypto enthusiasts appear to be taking advantage of the ongoing bullish trend, which is generating major activity across the blockchain network. The eco-friendly Solana blockchain, the most popular in scale, has managed to defeat Ethereum in recent times. This is thanks to the Solana-based NFT and Memecoin craze that has captured the attention of members of the global Web3 community. According to data collected by Coinbase, $11 billion (roughly Rs. 91,703 crores) worth of transactions took place on the Solana blockchain in the last 24 hours alone, with people buying smaller tokens and memecoins based on the network.

In a recently published analysis, CoinGecko ranked Solana number one on its list of the most popular blockchains. According to its data, Solana garners 49.3 percent of global crypto investors' interest.

Solana was launched in 2020 by Solana Labs, founded in 2018 by Anatoly Yakovenko and Raj Gokal. At the time of its launch SOL, the native token of Solana was priced at $0.22 (approximately Rs 18). Now, with the increase in Solana-based activities, the price of its token is also increasing. This week, the price of SOL token crossed the $200 (approximately Rs 16,700) level for the first time since its inception. After going through a minor price correction period, SOL is currently trading at $175 (approximately Rs 14,600). In fact, the value of SOL has increased by a remarkable 700 percent over the past year.

Solana blockchain has reportedly managed to raise $150 million (approximately Rs 1,252 crore) through the sale of memecoins like Bonk and Slerf. Subsequently, transaction fees on Solana have also seen an increase in recent months despite the blockchain being renowned for comparatively cheap gas fee charges.

“Solana has shown great strength. The DEX's total trading volume is also heavily tilted towards SOL, with a total volume of over $6 billion (roughly Rs. 50,190 crores) traded on the Solana chain in the last 24 hours; In the case of Ethereum it has been only around $2.1 billion (approximately Rs 17,566 crore). “Memecoin mania is the biggest driver of on-chain trading we are seeing today,” CoinSwitch Markets Desk tells Gadgets360.

As far as Ethereum is concerned, the blockchain went through a significant update called Denkun earlier this year. Furthermore, the Ethereum blockchain has secured the second position in the most popular blockchain list compiled by CoinGecko. Ethereum accounted for 12.73 percent of the global traffic share between January 1 and March 18, 2024.

“This is likely because Ethereum is already well-established as an ecosystem and familiar to investors, so it is no longer considered a new, trending crypto narrative,” the analysis said.

BNB Chain, Cosmos, Avalanche, and Arbitrum took the third to sixth spots on CoinGecko's list.


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