Hypothesis on meme tokens is escalating dramatically on the cryptocurrency market, influencing on-chain exercise and transaction charges. This week, we delve into the efficiency of meme tokens and their influence on the blockchain ecosystem. Moreover, how the anticipated Dencun improve will help L2s in mitigating the sharply growing charges brought on by the latest meme coin mania can even be a topic of dialogue.

Throughout a sturdy crypto bull market, retail merchants are playing on riskier objects, inflicting meme tokens to extend in worth by a median of significantly over the earlier month. The PEPE token led the climb with an unimaginable 600% month-to-month return, outperforming Ethereum-based tokens. 

Though PEPE has skilled a slight pullback, 91% of holders are nonetheless worthwhile, with solely 170,000 holders in comparison with SHIB’s 1.3 million and DOGE’s 6.3 million. Based on DeFiLlama, Solana-based tokens have a weekly DEX buying and selling quantity of about $15 billion, virtually equal to Ethereum’s whopping $20 billion.

Ethereum transaction charges have surged to ranges not seen in almost two years as a result of emergence of the meme coin mania; they now surpass $190 million per week, indicating an annual run price in extra of $10 billion. The fee-burn mechanism of Ethereum depleted its provide by 33,000 ETH ($125 million) this week. Nevertheless, most customers have been deterred by the mainnet’s exorbitant transaction charges, which common $28. Concurrently, because the improve of Nitro, the charges for Arbitrum, a popular L2 answer, have crossed $1.

The Dencun improve for Ethereum is scheduled for March 13. Proto-danksharding, or EIP-4844, shall be carried out inside his framework. Proto-danksharding implements blobs, a novel transaction kind that considerably reduces the price of knowledge availability for L2s. 

As OP stack chains develop into extra environment friendly, market forecasts point out that the charges of the first L2s will lower by not less than 80%. This improve will facilitate operations, with charges for actions similar to USDC deposits on Aave doubtlessly lowering to $0.0091—a 27-fold discount. Polymarket projections even anticipate a 60-fold discount in L2 prices.

Though the exact magnitude of charge reductions after the Dencun improve remains to be unsure, one factor is for certain: a paradigm shift is imminent for the blockchain system. The implementation of those upgrades is anticipated to scale back the value of fuel, which has risen on account of the proliferation of social media tokens. Over time, it will result in an economical platform aligned with the necessities of layer two networks.