Solana out on the woes of SOL-based Meme Coins.

Solana (SOL) was the hardest hit among crypto investment products last week with modest gains of $30 million. Ethereum only recorded $4.2 million in inflows, while Bitcoin led the way with $42 million.

The latest CoinShares report attributes this muted performance to recent macroeconomic data, which makes the Federal Reserve unlikely to cut interest rates by 50 basis points (bps) in September.

SOL suffers the largest outflows on record

Amid weak earnings, Solana spent $39 million, its biggest negative number on record. This sharp decline followed last week's $4.5 million inflow, indicating a significant shift in investor sentiment to SOL.

According to CoinShares, the record release in Solana was accompanied by a significant decrease in trading volumes of SOL-based meme coins. Declining demand for these properties played a key role in Solana's decline, the report suggests.

“Solana has seen its largest withdrawal of $39 million on record as it faces a sharp drop in trading volume for the highly trusted meme coin,” a quote from the report said.

Read more: Top 11 Solana Meme Coins to See in August 2024

In fact, CoinGecko data shows a 4.4% drop in the market capitalization of Solana Meme coins. The top three — Dogwhiphat (YFF), Bonk (BONK) and Book of Meme (BOME) — are down about 5% since the start of Monday's session.

Declining trading volume of these tokens, coupled with speculation of a possible ETF rejection, contributes to the negative trend in SOL flows. Meanwhile, Tron-based tokens following Justin Sun's announcement of SunPump, a token generator launched by Sun.io, have boosted trading volumes and revenue metrics for newly created tokens.

Tron can steal Solana's meme coins thunder.

Tron's SunPump enables the creation of meme coins on the Tron blockchain. It has already launched over 5,500 Mem Coins and has generated significant TRX revenue. With this track record, SunPump positions itself as a direct competitor to Solana's popular Pump.Fun platform. The latter recently saw transaction fees rise to $5.3 million in 24 hours.

As the discussion around SunPump continues, there are speculations that Tron meme coins could replace Solana meme coins, Justin Sun highlights a large liquidity pool.

“To me, when it comes to the whole “Why TRON, why SunPumpMeme?” thing, the biggest dynamic is TRON's $60 billion USDT. No other blockchain protocol has a liquidity pool this massive. Meme coin platforms live and die by liquidity, and TRON has earned the money in a heartbeat. .

Undoubtedly, Tether's USDT stablecoin on TRON has a wider distribution than any other blockchain protocol. Solana, which currently stands as the main chain on MemCoin's activity metrics, has only $1.9 billion in circulation on it. Conversely, up to $60 billion USDT will be distributed on the TRON blockchain.

Read more: 7 Hot Meme Coins and Altcoins Trending in 2024

Tron and Sunpump have committed $10 million to the Meme Ecosystem Boost incentive program to revitalize the meme coin narrative by supporting new projects. While this is a start, concerns remain due to platforms like pump.fun, which have drawn criticism for allowing bad actors to launch Mame coins and pull the rug.

Critics argue that these plans could bypass Tron and SunPump's “rigorous vetting process,” which would undermine the credibility of the meme coin ecosystem by enabling malicious activities.