In the current meme-coin frenzy, traders are ditching Ethereum due to high gas fees, flocking instead to chains like Solana and Avalanche where coins like Bonk and Coq Inu are making astronomical gains.
As crypto prices rise, a new meme-coin season is unfolding, with traders actively moving from one blockchain to another. Notably, the high gas fees on Ethereum are prompting these traders to seek opportunities on alternative chains, as trading on ther network becomes prohibitively expensive during periods of congestion.
Solana has emerged as a primary beneficiary of this migration. Data from DeFiLlama shows that in the last seven days, Solana has exceeded Ethereum in DEX trading volume, achieving over $9 billion compared to Ethereum’s $8.83 billion.
Weekly DEX Volume by Chain, Source: defillama.com
Solana’s major appeal lies in its significantly lower transaction costs. For traders aiming to speculate on meme-coins with a $50 investment, in the hopes of achieving 1000-2000% returns, Ethereum’s $10-20 swap fees can be prohibitively high.
Additionally, Solana provides a smooth user experience that closely mirrors that of Ethereum, eliminating the learning curve for newcomers. The rising value of Solana’s native token, SOL, also sets it apart from Ethereum and serves as a further draw for new traders to the Solana ecosystem.
Traders are particularly drawn to the remarkable success of certain meme-coins on Solana. For instance, the widely-known Bonk coin has soared over 500% this month, which even helped increase sales of Solana's Saga phone. Meanwhile, other projects like $WIF have seen extraordinary gains, exceeding 2000% in just the past week.
Solana is not the only ecosystem catching the eye of meme-coin traders. Avalanche has also been garnering significant attention recently. For instance, one of its meme-coins, Coq Inu, has soared by over 3800% in the last 10 days.
Huge gains have been recorded by some traders. Notably, one managed to turn $454 into $2.19 million in just two weeks by trading $COQ. Interestingly, the description of $COQ on its website reads:
“$COQ is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.”
Although meme-coins lack utility and are inherently valueless, they have paradoxically become a tool for attracting new users to emerging ecosystems. Traders are actively transferring funds, creating new wallets, and exploring the trading functionalities of emerging blockchains in search of the next big meme-coin.
Yet, amidst the current excitement surrounding meme-coins, it is vital to recognize that they often mirror the nature of a casino, where the house invariably has the advantage. As such, exercising caution while trading them is essential, and one should never invest more money than they can afford to lose.