Tron: Solana's memecoin killer?

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

Memecoins have been a top narrative for most of 2024, with Solana [SOL] leading the way. Solana’s memecoin launchpad, Pump.fun, has seen remarkable growth, even outpacing its parent chain and other top chains in revenue generation.

However, Tron’s [TRX] massive memecoin campaign could challenge this dominance. Tron’s founder, Justin Sun, has been heavily promoting the chain’s memecoins and even launched a Pump.fun alternative called Sunpump.

According to market analyst Wazz Crypto, meme coin traders might be shifting towards Tron due to 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.”

The analyst suggested that Solana’s fees might 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 shared Wazz Crypto’s observation and advised Solana to find ways to channel meme coin users into 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, suggesting that a recent decline in the SOL price and overall weak sentiment could be the reason for the drop in the chain fees.

SOL vs. TRX price performance

Over the past seven trading days, SOL was down over 12%, while TRX shed 3% during the same period. This indicated that SOL’s decline was steeper than TRX’s.

On SOL’s daily chart, the token faced resistance at $140 and could be poised to slide towards $128 if the weakness persists. It traded at $139, up about 46% from its last cycle high of $259.

On the other hand, TRX’s market structure on the daily chart was bullish. It formed a bullish flag with a potential target of $0.20, which would be an additional 17% gain if the target is hit. At the time of writing, TRX traded at $0.16, up 10% from its last cycle high of $0.18.

Since Sunpump’s debut on 9 August, TRX has surged over 25% from $0.12 to over $0.16.

TRX’s price performance was stronger on the charts than SOL’s, especially after the introduction of the Pump.fun alternative. It remains to be seen how the fierce competition for meme coin dominance will unfold.