Fantom’s memecoin experiment: Can it ape Solana’s success?

  • Activity on Fantom was on a 30-day even though the co-founder put out an exciting update.
  • If deployed, press time data showed that the memecoins might not match up to Solana’s.

Andre Cronje, one of Fantom’s co-founders, announced that the Fantom network will now welcome creators who are interested in launching their own meme coins.

In a blog post published on April 9th, Cronje expressed his intention to establish a safer setting for both communities and investors.

Time to save the chain?

Despite defending Solana [SOL] in the face of recent criticisms, Cronje set some conditions. Specifically, he required that 10% of any approved tokens be locked away, and an additional 5% be allocated for team expenses. In simpler terms, a portion of the new tokens would be reserved for secure storage (10%), while another portion (5%) would be used to cover the team’s costs.

Approximately 85% of the leftover tokens will be added to a liquidity pool in the foundation’s multi-signature wallet, which is held in FTM and the related token. A sum of 100,000 FTM will be allocated for this purpose.

Following a successful run for meme coins, Fantom has chosen to open its doors once more. Other blockchains have waned in popularity, but Solana continues to lead the pack.

On Fantom, things were unfolding differently than on Solana with its meme tokens like Bonk (BONK) and Dogwifhat (WIF). Prior to the arrival of these projects, Solana saw significant activity that left an impression.

Although AMBCrypto’s assessment indicated that Fantom and the scalable DeFi blockchain were not identical, Santiment’s statistics revealed that the number of active addresses on Fantom in the previous 24 hours was at a 30-day low.

Fantom’s memecoin experiment: Can it ape Solana’s success?

With fewer active addresses using FTM, there’s likely a decreased appetite for the token. This trend might make it challenging for the community to maintain excitement around memecoins.

Challenges lie ahead

The number of new addresses joining the Fantom network, similar to those that are currently active, has decreased. As depicted in the graph (shown earlier), Fantom has faced challenges in drawing in new participants.

In other words, even though things are currently this way, it’s possible that circumstances could shift. Take the example of a new memecoin being introduced, which garners a strong following and results in enhanced liquidity and increased demand for FTM.

In addition to the indicators previously discussed, the Total Value Locked (TVL) can provide insight into a proposal’s potential success once executed.

Based on DeFiLlama’s data, the project’s total value locked amounted to $140.53 million. It’s worth mentioning that this figure represents an uptick from previous amounts, but it still falls significantly short of the $5 billion mark reached during the 2021 bull market’s peak.

Fantom’s memecoin experiment: Can it ape Solana’s success?

The rise indicates better health but also signifies apprehension among participants, who are holding back significant investments, hoping for substantial returns.

Realistic or not, here’s FTM’s market cap in SOL terms

Despite the current condition of these metrics, the memecoin’s performance is not guaranteed to be poor if it is launched.

Although there’s a good chance that the methods used with other platforms may not align perfectly with how countless tokens operate on Solana, it’s still premature to make definitive predictions.

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2024-04-10 05:11