- Avalanche’s daily number of memecoin transactions reached 10,000 twice in March.
- The memecoin frenzy subsided significantly on Avalanche, in line with the decline in Solana numbers.
While the market remained impressed by the scale of memecoin activity on networks such as Solana [SOL] and Base, another prominent Layer-1 (L1) blockchain quietly rose through the ranks.
Avalanche very much in the race
According to on-chain analyst Alex Avalanche [AVAX] witnessed significant speculation surrounding these community coins over the past two months.
The Dune Analytics The dashboard he created showed that the daily number of transactions exceeded 10,000 twice in March, with substantial volumes also observed in early April.
Source: Dune Analytics
Moreover, the number of users actively participating in these transactions also rose to over 4,000 in March. Note that this was also the moment Solana exploded with memecoin madness.
The most popular among the meme tokens was Coq Inu [COQ], a chicken-themed coin. It has maintained a 40%-60% share of all meme currency transactions on the network.
In fact, at the height of the frenzy in March, it had pumped more than four times in a two-week span, AMBCrypto noted using CoinMarketCap facts. However, at the time of writing, the sign was nursing losses.
As seen in the chart above, the frenzy subsided significantly as April progressed, which was in line with the cooling we saw in Solana’s case.
The Avalanche foundation, the developer of the Avalanche chain, started making strategic investments in memecoins and saw their upside potential. Besides COQ, some of the other coins selected for investment were Kimbo (KIMBO) and Gecko (GEC).
Realistic or not, here is AVAX’s market cap in BTC terms
How memecoins can help AVAX
Higher speculation with meme coins could increase deflationary pressure on the ecosystem’s native token AVAX as Avalanche burns any revenue it generates from transaction fees.
Meanwhile, AVAX was trading 1.5% lower at the time of writing, a situation slightly better than that of most leading coins on the market.