Despite the exciting updates from the co-founders, activity on Fantom continued for 30 days.

Data at press time suggests Memecoin may not match Solana’s if deployed.

Fantom [FTM] has revealed through co-founder Andre Cronje that it will open its network to anyone who wants to deploy memecoin.

Cronje said this in a blog post published on April 9. According to him, the goal is to create a “safer environment” for the community and investors.

Is it time to save the chain?

However, after the Solana [SOL] project faced some criticism, Cronje recently defended the project and gave certain conditions. He noted that 10% of any approved tokens will be locked and 5% will be used for the team's expenses. In other words, he mentioned,

“The remaining 85% of tokens will be placed in the Foundation’s multi-sig FTM/token LP. 100,000 FTMs will be made available.”

Fantom’s decision to open its doors comes amid a thriving memecoin season. While some blockchains have had their moment, Solana still seems to be dominating.

But there is a difference between what is happening on Fantom and what the Solana memecoin is bringing to the table. Before projects like Bonk [BONK] and Dogwifhat [WIF] came along, activity on Solana was impressive.

However, analysis by AMBCrypto suggests it is not the same DeFi scalable blockchain. At press time, data from Santiment shows that 24-hour active addresses on Fantom are at their lowest level in the past 30 days.

Source: Santiment

Fewer active addresses indicates less demand for FTM. If this continues, it may be difficult for the community to show interest in memecoins.

The challenge is here

Like active addresses, on-chain network growth has also declined. As shown in the above chart, this suggests that Fantom has been struggling to attract new participants.

However, it is not inappropriate to assume that the situation may change. For example, if a memecoin is launched and the community deems it worthy, liquidity and therefore the need for FTMs may improve.

In addition to the above indicators, the total value locked (TVL) can also determine whether the proposal will achieve good results after implementation.

According to DeFiLlama, the project has a TVL of $140.53 million. One thing we noticed is that the TVL has increased, but it is still far below the $5 billion value reached at the peak of the 2021 bull run.

Source: DefiLlama

While the increase indicates improved health, it also reflects participants’ hesitancy to invest large sums of money in the hope of getting good returns.

Still, the status of these metrics does not mean that memecoins will perform poorly if (when) deployed.

However, they may not be able to match the way large numbers of tokens are deployed under Solana. At the same time, it may be too early to predict.