Cardano founder Charles Hoskinson has lauded Snek.Fun, a meme coin launchpad, for increasing the network’s activity.
On September 6, Snek announced that Cardano had hit a record daily transaction volume. This marked the highest 24-hour DEX trading activity in the blockchain’s history, signaling a major surge in network engagement.
How Snek.Fun Sparked Record Activity on Cardano Blockchain
The increase in activity followed the September 5 launch of Snek.Fun, a meme coin launchpad created by SNEK and Splash, a decentralized exchange on Cardano. The platform allows users to create tokens for a 25 ADA fee.
A bonding curve is triggered once 75% of a token supply is purchased, and the market cap reaches 42,069 ADA. At this stage, 25% of the supply is added to a liquidity pool on Splash DEX. The platform then burns LP tokens to prevent the team from withdrawing liquidity.
This approach drew massive interest, with 20,000 users accessing the platform within 10 seconds of its launch. However, the surge in users and an unoptimized script caused network congestion.
“We take ALL responsibility for any issues. While we shared that some wallets and DEX’s are having issues, that doesn’t mean we are offloading blame. Ultimately it’s our product and our responsibility. Don’t blame Cardano,” Snek stated.
Despite these initial challenges, the Snek.Fun team quickly optimized the platform, achieving impressive results. Within the first 24 hours, over 2,000 tokens were created, and trading volume exceeded 5 million ADA.
Read more: What Are Meme Coins?
Market analysts believe that Snek.Fun could help popularize meme coins on Cardano, attracting new users and traders. They compare its potential influence to how platforms like Pump.Fun and SunPump increased user engagement on Solana and Tron.
According to Cardano analytics platform TapTools, Snek.Fun could have a similar effect. TapTools noted that Snek.Fun lowers entry barriers for new projects and promotes experimentation within the ecosystem. Additionally, it could serve as a model for future community-driven initiatives on Cardano.
“[Snek.fun] should bring new users to our blockchain and encourage current ecosystem participants to become more active on-chain, either by launching a token or taking part in a token launch,” TapTools added.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
However, crypto analyst Store Optimal raised concerns, stating that Snek.Fun must implement additional features, such as creator royalties and a messaging system, to ensure long-term success.
“Unless you change my mind, I assume NOTHING on Snek Fun will last. This is because there are no incentives like creator royalties. I also suspect malicious botting on some of these tokens, which further disincentivizes long-term memes. It’s just a suspicion, though. Feel free to prove me wrong,” he stated.
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Oluwapelumi Adejumo
https://beincrypto.com/snek-fun-triggers-cardano-record-volume/
2024-09-07 19:36:36
