Solana, Avalanche Meme Coin Trend Persists as Bitcoin Approaches $43,000

Due to these networks’ quicker speeds and cheaper transaction fees than Ethereum, traders are favouring them more and more.

As the meme coin trading frenzy on these networks entered its third week, tokens of Solana, Avalanche, and Injective saw increases of up to 20% on the last day.

Avalanche’s AVAX increased by over 12% before retreating somewhat, while Solana’s SOL increased by 8%. On Solana, the dog-themed tokens dogwifhat (WIF) and bonk (BONK) gained popularity, while on Avalanche, the hen-themed Coq Inu (COQ) drove the meme narrative and increased by more than 40% over the previous day.

Since Solana transactions cost less than a penny and are complete in seconds, while Ethereum transactions may cost up to $15 and take a minute, traders have been favouring these networks over Ethereum due to their significantly reduced transaction fees and faster speeds.

According to data, this has increased transactional activity on both networks, which has more than doubled in the last month, along with the number of active wallets and new users.

As traditional financial major BlackRock changed its proposal late on Monday, possibly in response to regulatory input, chances for an anticipated spot exchange-traded fund (ETF) listing in the United States were raised. Meanwhile, Bitcoin (BTC) approached $43,000 in the Asian afternoon hours.

Some trading companies claimed that the most recent market moves did not point to a near-term market downturn. A dip of between 10% and 20% is usually seen as a correction.

“Bitcoin has formed a double bottom on the intraday charts, and this dynamic indicates that the mood for a deeper correction has not materialized,” shared FxPro senior market analyst Alex Kuptsikevich.

“On the other hand, Tuesday’s peak is close to last Thursday’s, leaving Bitcoin inside the range. Average fees on the Bitcoin network topped $37, hitting a yearly high. The growth was fuelled by another wave of activity in the Ordinals segment, which increased demand for space in the blockchain, and thus increased BTC demand,” Kuptsikevich said.