New Meme Coin Launchpad Helps Cardano Reach Record Transaction Volume

Charles Hoskinson, the founder of Cardano (ADA), has praised Snek.Fun, a meme coin launchpad, for boosting network activity. On September 6th, 2024, Snek reported that Cardano reached a record daily transaction volume, marking the highest 24-hour DEX trading activity in its history.

This surge followed the September 5th launch of Snek.Fun, created by SNEK and Splash, a decentralized exchange on Cardano. The platform lets users create tokens for a fee of 25 ADA, which is the native token of the platform. In December 2023 and January 2024, Cardano processed over 4 million transactions, demonstrating a noteworthy uptick in on-chain activity.

Effective Management

A bonding curve activates when 75% of the overall supply of any token is sold and the market capitalization hits 42,069 ADA, adding 25% of the supply to a liquidity pool on Splash DEX and burning LP tokens to prevent liquidity withdrawal.

This approach attracted 20,000 users within 10 seconds of launch, causing network congestion due to high demand and an unoptimized script. Snek acknowledged the issues and took responsibility, optimizing the platform quickly. Within 24 hours, over 2,000 tokens were created, and trading volume exceeded 5 million ADA.

Embracing Meme Coins

Analysts believe Snek.Fun could popularize meme coins on Cardano, similar to how other platforms have boosted engagement on Solana (SOL) which is one of its main rivals alongside Ethereum (ETH). TapTools noted that Snek.Fun lowers entry barriers and encourages experimentation, potentially serving as a model for future Cardano initiatives.

However, analyst Store Optimal raised concerns about long-term success, citing the need for features like creator royalties and potential issues with botting. Meme coins are also, generally speaking, not meant to last very long and their highest profits usually operate on a first come, first serve basis.