- According to analysts, Solana’s dominance in the memecoin space could decline after Tron’s entry.
- The analysts cited Solana’s declining fees as a possible indicator of the exodus to Tron.
Memo coins have been a top-performing story for most of 2024 Solana [SOL] dominates the scene. Solana’s memecoin launchpad, Pump.fun, even saw remarkable growth, occasionally toppling the sales of its parent company and other top chains.
But this dominance could subsequently be threatened Trons [TRX] huge memecoin campaign. Tron founder Justin Sun has promoted the chain’s memecoins and even launched a Pump.fun alternative: Sunpump.
Tron: Solana’s memecoin killer?
According to market analyst Wazz Cryptomeme coin traders moved to Tron, citing a drop in Solana’s fees.
“Solana’s total costs and Jito tips have dropped by more than 50% since Justin Sun copied Pumpfun on Tron. It seems that many people got tired of the Sol casino and moved to the Tron casino.
Source: Dune
The analyst added that Solana’s compensation could move toward zero if the exodus to Tron continues.
“Please note that over 80% of the fees generated on Solana are priority fees/MEV tips. If most gamblers move, they will trend toward $0.”
Crypto market commentator Adam Cochran reiterated Wazz Crypto’s prospects and warned Solana to find ways to attract meme coin users to solid projects like DePINs.
“The rotation of Pump Fun users to Tron is huge… This means that much of Solana’s user growth is at a very low closing price and every chain is one good app away from capturing those users.”
However, another user downplayed the observed migration and suggested a recent decline in SOL price and overall weak sentiment as the possible reason for the drop in chain fees.
SOL vs TRX price performance
Over the past seven trading days, SOL is down over 12%, while TRX is down 3% over the same period. It meant that SOL crashed harder than TRX.
On SOL’s daily chart, the token struggled to stay above $140 and could be dragged towards $128 if weakness persists. It traded at $139, up about 46% from the last cycle high of $259.
Source: SOL/USDT, TradingView
On the other hand, TRX’s market structure has been bullish. It drew a bullish flag with a potential target of $0.20, which would be an additional 17% gain if the target was met. At the time of writing, TRX was trading at $0.16, up 10% from the last cycle high of $0.18.
Since Sunpump debuted on August 9, TRX has exploded by more than 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 the introduction of the Pump.fun alternative. It remains to be seen how the cutthroat competition for meme coin dominance will play out.