Layer-1 blockchain Solana may be evolving into a “one-trick pony” for memecoin generation and trading, according to a recent Standard Chartered report.
According to a May 27 Standard Chartered research report shared with Cointelegraph, Solana “dominates in areas that demand high-volume, low-transaction-cost solutions” due to its design prioritizing fast and cheap transaction confirmation. The report suggested that this has had an unintended consequence:
“So far, this has been mostly in memecoin trading, which accounts for the majority of activity on Solana (as measured by ‘GDP’, which is application revenue).”
Standard Chartered said the memecoin frenzy served as a stress test for Solana’s scalability but came with drawbacks due to the volatility and speculative nature of such assets. As memecoin trading volumes decline, the bank warned that Solana may struggle to maintain momentum.
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Memecoin trading passed its peak
The report said Solana-based memecoin activity