In the past week, Meme coins have become more and more popular because Elon Musk has just publicly talked about Dogecoin again, hinting that TESLA can enable DOGE payment for all product lines at some point. The crazier! All kinds of meme coins are flying everywhere.
So much so that every day in our community group, people are talking about or investing in various newly built Meme coins in the Solana ecosystem. My personal opinion is that some of these Meme coins that are currently very popular and have a lot of gimmicks are worthless. (even some Meme coins are extremely risky, and there are many projects that lose their assets overnight), so it is necessary to write an article to alert people who are preparing to invest in various Meme coins and who have already invested in them.
The Solana blockchain ecology has achieved the largest price increase to date precisely because of its high compatibility with the Meme project. Due to its low transaction fees and network speed, the Solana blockchain has become a cornucopia of Meme coins. While these factors contributed to the memecoin’s initial success on Solana, they also represent challenges to its long-term viability.
But Solana’s current price rise is not all due to the popularity of its meme coin. Pantera Capital is buying Solana at a highly discounted price (39% lower than the 30-day average price), unlocking it linearly (locking it and keeping it for many years) achieve belonging).
Solana is experiencing a surge of new daily addresses, which means more users are actually using the network, possibly for decentralized applications (dApps), NFTs, or meme coins (most projects).
Memecoins projects are exploding in the Solana ecosystem. A meme coin that deliberately misspelled a celebrity's name (Jeo Boden for Joe Biden) has soared in popularity, reaching a market cap of $49 million, up nearly 12,000% in three days. Memecoins such as Bonk and Dogwifhat have a combined market capitalization of nearly $4 billion, and these tokens are the two largest Solana ecosystem projects by market capitalization. When memecoins become the primary driver of liquidity, daily transactions, and total value locked (TVL), there will be significant disruption once the “memecoin dumping process” begins in the decentralized finance (DeFi) ecosystem. risk.
If the hype surrounding this narrative begins to fade, selling pressure intensifies. In this case, it could cause the price of the ecosystem’s native cryptocurrency to drop rapidly.
Memes on Solana may look attractive, but lack intrinsic value and rely on hype and speculation, making short-term success unsustainable. Reliance on memecoins could negatively impact other projects on Solana and leave the network vulnerable to manipulation and volatility. The focus should be on projects that have real utility and long-term potential for the long-term health of the Solana ecosystem.
"When a blockchain project's ecosystem relies on memes or short-lived projects rather than sustainable and scalable projects, growth and liquidity are on thin ice."
Solana is one of the most popular and fastest-growing blockchains in the world, and at the time of writing, it ranks as the fifth-largest cryptocurrency by market capitalization. The diversity and versatility of its applications spans dApps, NFT marketplaces, and gaming platforms. SOL has recovered significantly from its lows and is up 70% from its all-time high.
However, the sustainability of this growth may be questioned given the injection of liquidity provided by short-lived projects such as memecoins. Since meme coins tend to be part of pump-and-dump schemes, attracted by low fees and fast speeds, most of the liquidity will not remain in Sonala.
In summary, the reputation of a mature blockchain network must convey an aura of trustworthiness to investors, developers, and validators. Any sign of concern or credibility issues can have devastating effects.
Past selections:
"2024 Crypto Market Investment Outlook"
"Ethereum will move towards $10,000, 2024 roadmap analysis!" 》
"The spring of Layer 2 is coming, what other Layer 3 projects are worth paying attention to?"
"Hundred Times Track - Crypto Market Opportunities in March"
"The price will exceed $100,000 after halving!" 》
Note: All content represents the author’s personal views only and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice regarding tax consequences.
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