- Avalanche’s daily memecoin transaction count hit 10k twice in March.
- The memecoin frenzy subsided significantly on Avalanche, aligning with the drop in Solana’s numbers.
As an experienced crypto investor, I’ve seen my fair share of trends come and go in this space. And while memecoins have been a hot topic lately, with networks like Solana seeing unprecedented activity, it’s important not to overlook the progress being made by other players in the L1 blockchain race.
I’ve been closely monitoring the cryptocurrency market, and I must admit, I’ve been left in awe by the memecoin frenzy on networks like Solana (SOL) and Binance Smart Chain. However, while everyone’s focus has been on these platforms, another layer-1 (L1) blockchain has been making steady progress behind the scenes.
Avalanche very much in the race
Based on the analysis of cryptocurrency expert Alex, who focuses on on-chain data, there has been considerable buzz and anticipation surrounding the community tokens of Avalanche (AVAX) over the past two months.
As a researcher examining the data from Dune Analytics, I discovered that the daily transaction count surpassed the 10,000 mark on two occasions during March. Moreover, there were noteworthy transaction volumes observed around the beginning of April.
As a crypto investor, I’ve observed an impressive surge in the number of people transacting on the blockchain network. In fact, we saw over 4,000 active users twice in March alone. This trend coincided with Solana’s explosive growth during the memecoin craze.
Among all meme tokens, COQ, which is based on a chicken theme, holds the largest market share. Approximately 40% to 60% of all meme currency transactions on the network involve this coin.
As a crypto investor, I’ve witnessed firsthand how rapidly the market can shift. In March, I observed an astonishing surge as the token I was invested in saw its price more than quadruple within just two weeks, according to AMBCrypto’s analysis using CoinMarketCap data. However, at this moment, the token is experiencing losses.
The graph illustrates how the excitement noticeably decreased towards the end of April for the situation with Solana, mirroring the observed calm-down trend.
The Avalanche Foundation, the entity behind the Avalanche blockchain, has recently begun investing strategically in certain memcoins. Among their choices are Kimbo (KIMBO) and Gecko (GEC), in addition to COQ.
Realistic or not, here’s AVAX market cap in BTC’s terms
How memecoins could help AVAX
As a financial analyst, I would interpret this statement as follows: My analysis indicates that if the value of meme coins increases significantly within the Avalanche ecosystem, there could be heightened deflationary forces acting upon the native token AVAX. This is due to Avalanche’s mechanism of burning all transaction fee revenues, which effectively removes those tokens from circulation and reduces the overall supply.
At present, I observe Avax trading approximately 1.5% below its current price level, which is a slightly more favorable position compared to many other prominent cryptocurrencies in the market.
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2024-05-02 09:11