The Memecoin market is experiencing an unprecedented surge, with blockchain networks battling for dominance. Leading the charge is Solana, which recorded a staggering $126 million in revenue last month, according to CryptoRank. This surge was largely fuelled by the launch of high-profile Memecoins such as TRUMP coin, which sparked a trading frenzy across the network.
Source: CryptoRank.io
Meanwhile, BNB Chain claimed 7th place in CryptoRank's top 10, generating $1.4 million in revenue. However, recent data suggests that BNB Chain is positioning itself as the new home for Memecoins, sparking intense competition in the crypto space.
BNB Chainâs Strategic Move: A Memecoin Hub in the Making?
A massive migration from Solana to BNB Chain is underway. On-chain bridge data shows an increase in cross-chain transactions, indicating that many traders are moving from Solana's Rust-based ecosystem to BSC's Ethereum Virtual Machine (EVM)-compatible infrastructure.
In response to this momentum, Binance founder CZ stated:
CZ đś BNB on X: "đ BNB Chain was caged for too long. Time to unleash!" / X
Backed by this vision, BNB Chain launched a $4.4 million 'Liquidity Pool Support' campaign on 18 February to incentivise the growth of Memecoin on its network. Eligibility criteria include:
Native BSC launch on approved token platforms
At least 48 hours old from launch
Market capitalisation of over $1 million
This initiative aims to cement BNB Chain's position as the go-to blockchain for Memecoins, potentially challenging Solana's dominance in the space.
Memecoins: A Goldmine for Crypto Exchanges
The surge in Memecoin trading has led to higher profitability for cryptocurrency exchanges, with platforms capitalising on the increased activity.
1. Trading Volumes Skyrocket
According to DefiLlama, Memecoin trading volume has increased by 16% this week, surpassing Solana trading volume at the time of writing.
Source: DefiLlama
This explosive growth highlights memecoinsâ ability to generate lucrative fees for networks and exchanges, making them a key asset class in the crypto economy.
2. The Ask-Bid Spread Advantage
Another key driver of exchange profitability is the ask-bid spread- the difference between the buying and selling price. Kaiko's research shows that Memecoins maintain consistently high bid-ask spreads.
Why is this important?
Wider spreads = higher exchange profits: Unlike stablecoins or blue-chip cryptos ($BTC , $ETH ), Memecoins offer exchanges wider spreads, increasing revenue from trading fees.
Market makers benefit: Liquidity providers (market makers) profit from these wider spreads, making Memecoins an attractive market despite its high-risk profile.
Exchanges also benefit significantly from meme trading, generating millions in trading fees, with CEX listings accelerating from 2020.
While US-regulated exchanges are still slower to list than offshore platforms, the gap between offshore launches and US listings has narrowed from years to months according to Kaiko Research. Some tokens, like PNUT, TRUMP, and MELANIA, landed on Binance and Coinbase within days, likely boosted by their ties to the U.S. President and the hype they generated.
3. Memecoins Attract New Investors
Memecoins act as a gateway for new traders, attracted by the potential for quick profits and viral appeal. With increasing liquidity and mainstream attention, networks and exchanges benefit:
Increased user engagement and trading activity
Higher on-chain transaction fees
Stronger network effects, driving platform adoption
The risks: Can Memecoins sustain their growth?
While Memecoins offer lucrative revenue streams, they come with inherent risks:
Extreme volatility - Price swings of 50%-100% within hours are common.
Lack of fundamental value - Most Memecoins lack utility and are based solely on speculation and hype.
Regulatory concerns - Future crackdowns could affect the sustainability of memecoin markets.
The future of Memecoins in crypto markets
The battle for Memecoin supremacy is well underway, with BNB Chain and Solana vying for dominance. While BNB Chain's strategic push could disrupt the market, Solana's first-mover advantage still holds weight.
For exchanges and networks, Memecoins represent a high-risk, high-reward segment that offers unmatched profit potential through trading fees and bid-ask spreads. However, sustainability remains a question mark as market speculation drives price action.
đ Will BNB Chain dethrone Solana as the ultimate Memecoin hub? Or will Solana's stronghold endure? The coming months will determine which blockchain will emerge victorious in the Memecoin revolution.
