In a shifting blockchain landscape, projects are making strategic moves to adapt to evolving industry conditions. Solana continues to assert its presence, maintaining strong decentralized exchange (DEX) volumes despite a downturn in meme coin trading, while also attracting new projects like PAWS, a SocialFi Telegram Mini App that migrated from The Open Network (TON) due to policy changes. Solana’s DEX Volumes Hold Strong Despite Meme Coin Turmoil, Says VanEck Solana’s decentralized exchange (DEX) volumes continue to rival those of the entire Ethereum ecosystem, even after a sharp decline in meme coin trading activity, according to asset manager VanEck. While the Solana blockchain recently faced a slowdown due to meme coin-related controversies, its overall market presence remains robust. VanEck’s March 5 report highlighted that in February, Solana’s share of total on-chain DEX volume surged to over 43%, briefly surpassing the combined DEX volume of Ethereum and its layer-2 scaling solutions. However, this dominance has slightly receded, with Solana’s market share dropping to around 30% in March, while Ethereum’s ecosystem now commands roughly 40% of the market. Despite the decline, VanEck’s head of research, Matthew Sigel, emphasized that Solana’s DEX volumes remain competitive. “Despite the Meme coin Meltdown, Solana DEX volumes are still holding their own — roughly matching the entire ETH ecosystem (L1 + L2s),” he posted on X. Solana’s trading activity took a hit following a series of high-profile meme coin-related scandals that shook investor confidence. VanEck’s report noted that stablecoin transfers—an essential component of on-chain trading—dropped by 80% from January levels. One of the most significant incidents occurred on Feb. 14 when the meme coin Libra, which was seemingly endorsed by Argentine President Javier Milei, saw its market capitalization wiped out by $4.4 billion within hours of launching. Similarly, traders lost approximately $2 billion across 800,000 wallets due to the highly publicized Official Trump (TRUMP) meme coin, tied to US President Donald Trump. Meme coin trading, primarily linked to Solana’s Pump.fun platform, has been a major revenue driver for the blockchain, accounting for around 80% of its network revenue. However, activity has slowed dramatically, with new token launches on Pump.fun declining by over 80% since January. Raydium’s Resilience Amidst the Downturn While the meme coin sector has struggled, Solana’s DeFi ecosystem remains resilient. Raydium, the blockchain’s most popular DEX, still boasts a total value locked (TVL) of over $1.3 billion, according to DefiLlama data as of March 6. VanEck’s report shows that Solana has been a standout performer in the current crypto market cycle. In 2024 alone, its token price has surged by 191%, on-chain revenues (excluding MEV) have skyrocketed by 700%, and stablecoin supply has expanded by 291%. “One of the biggest drivers of Solana’s growth has been meme coin trading,” VanEck noted, adding that Pump.fun generated over $577 million in fees in just over a year. While the recent downturn in meme coin trading has impacted Solana’s overall activity, the blockchain’s ability to maintain a significant share of DEX volumes indicates strong underlying demand. As the ecosystem continues to evolve, Solana’s performance in the broader DeFi landscape will be a key factor in determining its long-term success. With continued institutional interest and the potential for new innovations within the Solana DeFi space, the blockchain remains well-positioned for further growth despite short-term turbulence in the meme coin sector. PAWS Migrates to Solana in Response to Telegram’s Policy Shift In a decisive move against restrictive policies, PAWS, a widely popular Telegram Mini App, has migrated to the Solana blockchain after Telegram mandated that all Mini Apps and third-party crypto wallets exclusively operate on The Open Network (TON). The policy change forced many projects to either comply or leave Telegram’s ecosystem, igniting discussions on decentralization and the future of multichain development. PAWS, a SocialFi project that rewards users for engagement, chose not to be confined to a single ecosystem and instead embraced Solana’s thriving blockchain infrastructure. The transition of PAWS and its massive 80-million-strong user base to Solana significantly bolstered the network’s adoption. Since the migration, over 9 million Phantom crypto wallets have been downloaded, and more than 1 million new Solana addresses have been funded, all before PAWS’ token generation event (TGE). This surge in activity demonstrates Solana’s capacity to support large-scale projects and onboard mainstream users into the ecosystem. The migration also showed Solana’s appeal as an alternative to Telegram’s TON, proving that projects can thrive outside of walled gardens. Additionally, PAWS’ NFT vouchers gained immense traction on the Solana-based NFT marketplace Magic Eden, triggering over 100,000 transactions in just two weeks. The ability of PAWS’ community to seamlessly transition to a new blockchain highlights the importance of a strong product and engaged user base over rigid platform dependencies. The PAWS migration has rekindled a long-standing debate in crypto: value extraction versus value injection. Many blockchain initiatives generate short-lived liquidity influxes through speculative token trading, often leading to capital flight once interest wanes. This pattern has been especially evident in Solana’s ecosystem, where high-volatility meme coins and recent rug pulls have caused significant market turbulence. PAWS, however, is challenging this trend by emphasizing sustained user participation rather than speculation-driven growth. By focusing on long-term engagement and community-driven incentives, PAWS is fostering a more stable and enduring ecosystem. This shift aligns with Solana’s broader push to attract projects that prioritize sustainable development over short-term financial gains. Transforming PAWS into a Web3 Brand Beyond its blockchain migration, PAWS is undergoing a rebranding initiative to establish itself as a long-lasting intellectual property in the Web3 space. The project aims to evolve from a viral Telegram Mini App into a comprehensive Web3 brand with multiple revenue streams and strong community involvement. Key aspects of this transformation include: DeFi Integrations: Incorporating decentralized finance functionalities to enhance utility and reward active participants. Gaming Partnerships: Expanding into blockchain gaming to attract a broader user base. Social Engagement Tools: Introducing innovative features to maintain high levels of community interaction. Multichain Expansion: While PAWS has committed to Solana, future plans include extending its reach to Ethereum, layer-2 networks, and other ecosystems. In addition to its blockchain ambitions, PAWS seeks to establish itself as a recognizable mainstream brand. Real-world activations, strategic collaborations, and increased media presence are all part of its roadmap. Central to this vision is a sustainable token economy, ensuring that community members and token holders play an active role in governance and ecosystem growth. The shift from a widely used Mini App to a robust Web3 brand positions PAWS as a potential case study for how meme culture and viral engagement can be leveraged into a sustainable business model. Its transition also raises a critical question: can Telegram’s retail-heavy user base transition into permissionless blockchain ecosystems? If PAWS’ migration proves successful, it may serve as a blueprint for future Web3 projects seeking to break free from centralized platforms and establish themselves in decentralized environments. By demonstrating that a project can maintain and even grow its user base post-migration, PAWS is setting a precedent for how Web3 applications can thrive beyond the constraints of proprietary ecosystems. As the blockchain industry continues to evolve, PAWS’ journey will be closely watched. Whether its move to Solana marks the beginning of a larger trend remains to be seen, but its decision to prioritize decentralization over convenience is already making waves in the Web3 landscape.
