- 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.
Memecoins have been a top-performing narrative for most of 2024, with Solana [SOL] dominating the scene. In fact, Solana’s memecoin launchpad, Pump.fun, saw remarkable growth, occasionally toppling its parent and other top chains in revenue.
But this dominance could be threatened after Tron’s [TRX] massive memecoin campaign. Tron’s founder, Justin Sun, has been promoting the chain’s memecoins and even launched a Pump.fun alternative — Sunpump.
Tron: Solana’s memecoin killer?
According to market analyst Wazz Crypto, meme coin traders were moving to Tron, citing a drop in Solana’s fees.
“Solana Total Fees and Jito tips are down 50%+ since Justin Sun copied Pumpfun on Tron. Seems like many degens grew tired of the Sol casino and moved on to the Tron casino.”
Source: Dune
The analyst added that Solana’s fee could trend to zero if the exodus to Tron continues.
“Keep in mind like 80%+ of the fees generated on Solana are priority fees/MEV tips. If most of the gamblers move, these will gravitate to $0.”
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.
“The rotation of Pump Fun users to Tron is wild…Mean a lot of Solana’s user growth has a very low moat to churn out and any chain is one good app away from capturing those users.”
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
In the past seven trading days, SOL has been down over 12%, while TRX shed 3% over the same period. It meant that SOL plunged harder than TRX.
On SOL’s daily chart, the token struggled to hold above $140 and could be dragged towards $128 if the weakness persisted. It traded at $139, about 46% from its last cycle high of $259.
Source: SOL/USDT, TradingView
On the other hand, TRX’s market structure was bullish. It chalked a bullish flag with a potential target of $0.20, which would be a 17% extra gain if the target were hit. At the time of writing, TRX traded at $0.16, 10% from its last cycle high of $0.18.
Since Sunpump debuted on the 9th of August, TRX has exploded over 25% from $0.12 to over $0.16.
Source: TRX/USDT, TradingView
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.