- Per analysts, Solana’s dominance in memecoins could drop after Tron’s entry.
- The analysts cited declining Solana’s fees as a possible indicator of exodus to Tron.
As a seasoned crypto investor who has witnessed the rise and fall of numerous altcoins, I have to admit that the recent developments between Solana [SOL] and Tron [TRX] have piqued my interest. For quite some time, Solana was the undisputed king of memecoins, with its launchpad Pump.fun dominating the scene. However, the entry of Tron, led by the charismatic Justin Sun, seems to be shaking things up.
2024 saw memecoins as a significant trend, with Solana’s [SOL] memecoin sector leading the pack. Notably, Solana’s memecoin launch platform, Pump.fun, experienced impressive expansion, even surpassing its parent chain and other major competitors in terms of revenue on certain occasions.
However, Tron’s [TRX] aggressive memecoin initiative could potentially challenge its current dominance. Tron’s creator, Justin Sun, is actively marketing the chain’s memecoins and has even introduced a platform similar to Pump.fun called Sunpump.
Tron: Solana’s memecoin killer?
As reported by market analyst Wazz Crypto, it appears that meme coin traders are shifting towards the Tron platform. This transition seems to be due to a decrease in Solana’s transaction fees.
As a crypto investor, I’ve noticed that the total fees on Solana and tips for Jito have dropped by more than 50% since Justin Sun seemingly imitated Pumpfun on Tron. It appears that many degen (degenerative finance) enthusiasts are growing weary of the Solana casino and are shifting their attention to the Tron casino instead.
The analyst added that Solana’s fee could trend to zero if the exodus to Tron continues.
“Bear in mind that over 80% of the fees earned on Solana primarily consist of priority fees and MEV tips. If a majority of gamblers were to migrate, these fees could potentially drop to zero.”
Crypto market commentator Adam Cochran echoed Wazz Crypto’s outlook and cautioned Solana to find ways to attract meme coin users to solid projects like DePINs.
“It’s quite astonishing how many Pump Fun users are shifting towards Tron. Essentially, this suggests that a significant portion of Solana’s user base could be easily lured away because they lack strong barriers to competition, making them susceptible to migration to any other blockchain platform once an appealing app becomes available.”
However, another user downplayed the perceived migration and suggested a recent SOL price decline and overall weak sentiment as the potential reason for the drop in the chain fees.
SOL vs. TRX price performance
Over the last week, Solana (SOL) has experienced a significant drop of more than 12%, whereas Tronix (TRX) declined by only 3%. This suggests that Solana fell more steeply compared to Tronix during this period.
Looking at Solana’s daily price chart, the token has found it challenging to maintain positions above $140. If the current downtrend continues, it may slide towards $128. At the moment, it is trading around $139, representing approximately a 46% drop from its peak during the last cycle at $259.
Instead, let me rephrase that for you in a more conversational style: The structure of TRX‘s market was actually quite positive. It formed what’s called a bullish flag, which, if reached, could potentially push the price up to around $0.20. That would represent an additional 17% increase from its current value. At the moment of writing, TRX was being traded at approximately $0.16, which is about 10% lower than its previous peak of $0.18 during the last cycle.
Since Sunpump debuted on the 9th of August, TRX has exploded over 25% from $0.12 to over $0.16.
In conclusion, TRX was better positioned on the charts than SOL, especially after introducing the Pump.fun alternative. It remains to be seen how the cutthroat competition for meme coin dominance will play out.
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2024-08-30 15:04