- Solana leads in token creation.
- Memecoins drive much of Solana’s token.
- The base chain holds second place.
Solana has recently seen an explosion of memecoin creation on the chain. Thanks to platforms that make token launches easier than ever, developers, influencers, and even celebrities jumped on the trend.
Recent data shows just how significant this trend was. Solana dominated new token launches, outpacing all other chains by a large margin.
Memecoins Drive Solana’s Token Launches
New data shows that Solana accounted for 87% of new token launches since September. Specifically, out of 110,180 launched across all blockchains, 96,010 tokens were Solana-based.
Several reasons exist for this dominance. One is Solana’s scalable infrastructure, which enables fast transactions and low fees. The low fees also translate into the low cost of creating token smart contracts.
Particularly, Pump.fun leveraged these low fees to streamline token creation on Solana. The platform enabled launching a new token in just a few clicks, bringing thousands of new developers to the space. This has a major impact on memecoins, with thousands of new memecoins launched daily. However, this overwhelming volume also led to concerns.
Solana Memecoins Face Criticism
The explosion of memecoins contributed to a significant uptick in volume on the Solana Network. However, many of these projects faced criticism due to their lack of utility. Others were pump-and-dump schemes, which caused major losses to investors.
For instance, in June 2024, 30 celebrities launched memecoins. These include Andrew Tate’s DADDY, Caitlyn Jenner’s JENNER, and Iggy Azalea’s MOTHER. Just one month later, all of them were down. The average price drop across these tokens was a staggering 94%.
One of the major reasons behind this low performance is just how easy it is to launch these tokens. The ease of launch attracts inexperienced teams and even outright scammers.
On the Flipside
- Despite the launch of a Pump.fun competitor on Tron, the chain did not show up among the top platforms by new token launches.
- As the memecoin market is slowing down, Solana is facing declining volumes. This is becoming a potential risk for its price performance and network stability.
Why This Matters
Solana’s dominance in token launches showcases its robust technology and DeFi ecosystem. However, it also unveils the risks associated with memecoin trading.
Read more about Solana memecoins:
Solana-Based Memecoin Religion In Turmoil Amid Rug Pull Accusations
Read more about Solana’s recent performance:
Solana Challenges Ethereum With Q3 Growth But Faces New Competitor
