In March, the number of daily memecoin transactions on Avalanche exceeded 10,000 twice.
The memecoin boom on #Avalanche largely subsided at the same time as #Solana fell.
While the market was shaken by the scale of memecoin activity on networks like Solana [SOL] and Base, another prominent Level 1 (L1) blockchain was quietly climbing the ranks.
According to network analyst Alex, the Avalanche [AVAX] network has seen significant speculation around these community coins over the past two months.
According to his Dune Analytics dashboard, the number of daily transactions topped 10,000 twice in March, and early April also saw significant numbers.
In addition, the number of users actively participating in these transactions has also increased, exceeding 4,000 twice in March. It is worth noting that it was during this period that Solana's enthusiasm for #meme coins exploded.
The most popular meme token was Coq Inu [COQ], a chicken-themed coin. It accounted for 40-60% of all meme currency transactions on the network.
At the peak of the hype in March, its value more than quadrupled in two weeks, according to AMBCrypto, based on data from CoinMarketCap. However, the token has suffered losses at the time of publication.
As you can see from the chart above, the hype died down considerably in April, which is consistent with the cooling seen in the case of Solana.
Avalanche Fund, developers of the Avalanche blockchain, saw the growth potential in mimcoins and began investing strategically: in addition to COQ, coins such as Kimbo (KIMBO) and Gecko (GEC) were targeted.
The rise in meme coin speculation could increase deflationary pressure on the native tokens of the #AVAX ecosystem as Avalanche exhausts all revenue generated from transaction fees.
In the meantime, AVAX was trading 1.5% lower at the time this news was published, slightly better than most of the major coins on the market.
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