Solana and Avalanche have witnessed a surge in adoption thanks to the euphoria surrounding the new meme coins COQ, WIF and BONK, this surge in users on SOL & AVAX is slowly . On December 19, tokens from Solana, Avalanche, and Injective (INJ) experienced spikes of up to 10%, continuing the excitement around meme coins trading into their third week on these networks.
Solana and Avalanche witnessed notable increases, with SOL rising by 9%, and AVAX climbing nearly 11%, albeit retracting some gains later. On the Solana network, dog-themed tokens like dogwifhat (WIF) and bonk (BONK) gained popularity. Simultaneously, Avalanche’s momentum was fueled by the chicken-themed Coq Inu (COQ), which surged more than 60%.
Traders are increasingly favoring Solana and Avalanche over Ethereum, primarily due to their significantly lower transaction fees and faster processing speeds.
Solana transactions cost less than a cent and are completed within seconds, offering a sharp contrast to Ethereum, where transactions may cost at least $15 and take up to a minute to process. This shift underscores the growing importance of efficiency and cost-effectiveness in the blockchain and cryptocurrency space.
The lower transaction fees and faster speeds of Solana and Avalanche have resulted in a substantial increase in transactional activities. Over the past month, both networks have seen their transaction volumes more than double, accompanied by a rise in active wallets and new users, according to recent data.
In Asian afternoon trading hours, Bitcoin (BTC) approached the $43,000 mark, driven by renewed optimism surrounding a potential spot exchange-traded fund (ETF) listing in the US. This optimism was further fueled by BlackRock’s revised ETF proposal, likely influenced by regulatory feedback.
In the current market environment, some trading firms observe no signs of an imminent market correction, typically defined as a 10% to 20% drop. Bitcoin’s intraday charts show a double bottom formation, suggesting the market is not gearing towards a significant correction.
However, despite Bitcoin remaining within a specific range, average fees on the Bitcoin network have reached a yearly high of $37 due to increased demand in Ordinals (ORDI). This heightened demand for space on the blockchain has led to increased demand for BTC.
MemeCoins Guide:
The Evolution of Meme Coins
The inception of meme coins began with Dogecoin in 2013, featuring the iconic Shiba Inu dog and whimsical text like “such wow” and “much concern.” Initially created as a joke, Dogecoin gained significant traction during the 2016-2017 cryptocurrency bubble, experiencing a surge in value. However, like other cryptocurrencies, it faced a massive devaluation during the 2018 market downturn. While it saw a partial recovery in 2020, it didn’t reach previous peak levels.
Since Dogecoin’s introduction, numerous meme coins have emerged, including Nyancoin (based on nyancat), Shiba Inu, and variations of the original Dogecoin like Dogedash and Dogelon Mars.
The recent boom in meme coins can be traced back to the GameStop stock prices surge, driven by a subreddit community. Feeling betrayed after the stock manipulation incident, the community embraced Dogecoin for its decentralized nature and cultural alignment with internet memes.
How Meme Coins Operate
Unlike highly volatile cryptocurrencies like Bitcoin, meme coins offer a more affordable investment option. Dogecoin, for instance, has an unlimited supply of billions of coins on the blockchain, contrasting with Bitcoin’s periodic halving, creating digital scarcity.
Meme coins are more accessible due to their lower prices, enabling a broader audience to invest in larger quantities. With over 250 meme coin currencies, they are easy to produce, aligning with meme culture’s quick adaptation to new trends.
Risk Assessment of Meme Coins
Investing in meme coins, like any cryptocurrency, involves risks and rewards. The value volatility stems from word-of-mouth influence, often triggered by celebrities or short-lived internet phenomena, such as the GameStop and Dogecoin incidents.
Celebrities, like Elon Musk, tweeting about meme coins can lead to rapid value increases, but these gains are often short-lived. Additionally, meme coins’ reliance on word-of-mouth makes them susceptible to becoming worthless.
Security concerns also exist, with instances like a meme coin based on the Netflix series Squid Game, where creators exploited the show’s popularity, causing the coin’s value to surge before selling off all coins and absconding with investors’ money.
While Shiba Inu on Ethereum and Dogecoin on Litecoin are meme currencies on established blockchains, investors should exercise caution and not invest more than they can afford to lose in meme coins.
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