BNB Chain Dominates 45% of Memecoin DEX Volume, Flips Solana

BNB Chain memecoin trading

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BNB Chain memecoin trading: The memecoin trading landscape has witnessed a dramatic shift as BNB Chain emerges as the leading blockchain platform, capturing an impressive 45% of total memecoin decentralised exchange (DEX) volume. This significant milestone marks the end of Solana’s dominance in the rapidly evolving memecoin ecosystem.

BNB Chain’s Meteoric Rise Reshapes Memecoin Trading Dynamics

Recent on-chain data reveals that BNB Chain has successfully flipped Solana in memecoin trading volumes, establishing itself as the primary destination for memecoin enthusiasts and traders. The blockchain now commands nearly half of all memecoin DEX activity, effectively doubling the combined trading volume of Solana and Ethereum.

The transformation has been remarkable. Back in April, BNB Chain accounted for only 25% of the total memecoin DEX volume. However, by July, this figure had surged to its current 45% market share, demonstrating the platform’s rapid adoption and growing appeal among memecoin traders.

Solana’s Declining Market Position Signals Ecosystem Shift

Solana’s position in the memecoin trading arena has undergone a significant correction. The blockchain now holds only 25% of trading volumes, representing a substantial decline from its commanding 40% dominance just three months earlier. This steep 15% drop relegates Solana to second place, ending its impressive 12-month reign as the dominant blockchain for memecoin trading.

Despite this market repositioning, Solana memecoins continue to demonstrate exceptional performance. The Solana-based TRUMP memecoin recently skyrocketed an astounding 3,000% in under 24 hours, while the popular memecoin launchpad Pump. Fun is strategically plotting a $1 billion fundraising round.

Binance Alpha Program Fuels BNB Chain’s Memecoin Success

BNB Chain’s ascension to market leadership is mainly attributed to the strategic implementation of the Binance Alpha Program. This innovative initiative aims to enhance coin visibility and improve liquidity across the platform. The program serves as an incubation hub for promising projects, though success isn’t guaranteed for all participants.

Binance Alpha Program Fuels BNB Chain

The Alpha program’s impact extends beyond mere volume increases. It has created a robust ecosystem that attracts both developers and traders, fostering an environment where memecoins can thrive. However, investors should note that not all projects achieve sustained success, as evidenced by Bondex (BDXN), whose price collapsed following its listing on Binance due to massive profit-taking activities.

Ethereum and Emerging Blockchains Compete for Market Share

While BNB Chain and Solana dominate the headlines, Ethereum maintains a steady 20% share of memecoin trading volume, demonstrating the established blockchain’s resilience in the competitive memecoin landscape. Base blockchain has secured a 5% market share, positioning itself as a notable player in the ecosystem.

The remaining market participants include Arbitrum, Avalanche, Unichain, and Celo, which collectively account for 5% of the sector’s trading volume. This distribution highlights the increasingly competitive nature of the memecoin trading ecosystem as various blockchains vie for trader attention and market share.

Cardano Pursues Strategic Partnerships to Boost Memecoin Activity

Recognising the lucrative opportunities within the memecoin sector, Cardano has initiated strategic moves to enhance its ecosystem activity. Last week, Input Output formed a significant partnership with SNEK, Cardano’s largest memecoin, in a collaborative effort aimed at increasing ecosystem engagement and competing with established market leaders.

This strategic collaboration represents Cardano’s commitment to capturing a larger share of the memecoin trading market. By partnering with successful projects like SNEK, Cardano aims to establish the necessary infrastructure and community support to attract more memecoin projects and traders to its platform.

Industry Experts Predict Memecoin ETF Launch by 2026

The growing legitimacy and market capitalisation of the memecoin sector have caught the attention of traditional financial institutions. Bloomberg analyst Eric Balchunas has made a bold prediction regarding the future of memecoin investments, forecasting the launch of a memecoin-based exchange-traded fund (ETF) by 2026.

This prediction underscores the increasing institutional interest in memecoins, indicating that these digital assets may soon gain broader acceptance within traditional investment portfolios. Such developments could significantly impact trading volumes across all blockchain platforms as institutional capital enters the memecoin market.

Market Outlook and Trading Opportunities

The current market dynamics present compelling opportunities for both retail and institutional investors interested in memecoin trading. BNB Chain’s dominance, combined with Solana’s continued innovation and Ethereum’s stability, creates a diverse ecosystem that allows traders to explore various strategies and platforms.

Ready to explore the evolving memecoin landscape? Stay informed about the latest developments in blockchain technology and memecoin trading by following market trends, analysing on-chain data, and monitoring the strategic moves of leading platforms. Whether you’re interested in BNB Chain’s growth trajectory, Solana’s resilient community, or emerging opportunities on other blockchains, understanding these market dynamics will help you make informed trading decisions in this rapidly evolving sector.

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Ali Malik

Ali Malik is an experienced crypto writer specialising in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, Web3, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions. He is proficient in SEO optimisation.

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Bitcoin M2 Correlation Breakdown: Bull Run Continues Despite Deviation

Bitcoin M2 correlation

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The correlation between Bitcoin and the cryptocurrency market, as well as Bitcoin’s M2 correlation, has been the subject of speculation, as Bitcoin’s price movements appear to be diverging from the traditional correlation with global M2 money supply growth. With Bitcoin currently trading around $104,700, investors are questioning whether this deviation signals the end of the current bull run or merely represents a temporary decoupling in an otherwise robust market cycle.

Historical M2-Bitcoin Correlation

For years, Bitcoin has demonstrated a robust correlation with global M2 money supply expansion, often exceeding 84% correlation during specific periods. This relationship has been a cornerstone of many investment strategies, as Bitcoin has historically acted as a hedge against monetary inflation and currency debasement. When central banks around the world, including the Federal Reserve, the European Central Bank, the People’s Bank of China, and the Bank of Japan, expand their money supplies, Bitcoin has typically responded with upward price movements.

The correlation makes intuitive sense from an economic perspective. As central banks inject more liquidity into the global financial system through monetary expansion, investors often seek alternative stores of value to protect their wealth from potential currency devaluation. Bitcoin, with its fixed supply cap of 21 million coins, has emerged as a digital alternative to traditional hedges like gold, particularly appealing to younger investors and institutions embracing digital assets.

Current Market Dynamics and Deviation Patterns

Recent analysis reveals that while global M2 money supply has increased by 3.25% since the start of 2025, Bitcoin’s performance has not followed the expected trajectory based on historical patterns. The 90-day lagged correlation model, which has traditionally been more predictive of Bitcoin’s price movements, shows a decrease of 0.16% over the same period, yet Bitcoin has gained approximately 8% year-to-date.

Current Market Dynamics and Deviation Patterns

This deviation is particularly noteworthy because it suggests that Bitcoin may be operating under different market dynamics than in previous cycles. The cryptocurrency’s evolution from a niche digital asset to a mainstream investment vehicle, complete with institutional adoption and regulatory clarity in many jurisdictions, may be altering its traditional relationships with macroeconomic indicators.

Institutional Adoption and Market Maturation

The current market cycle differs significantly from previous Bitcoin bull runs due to unprecedented institutional participation. Unlike earlier cycles driven primarily by retail speculation, the 2025 market is characterized by substantial institutional capital inflows, regulatory acceptance, and integration into traditional financial systems. This institutional backbone provides Bitcoin with a different support structure that may be less dependent on pure monetary expansion cycles.

Major corporations, pension funds, and investment firms have allocated significant portions of their portfolios to Bitcoin, creating a more stable demand base. This institutional demand may be providing price support even when traditional M2 correlation models suggest otherwise, potentially explaining why Bitcoin has maintained strength despite the apparent deviation from historical patterns.

The Role of Central Bank Policies and Global Liquidity

Despite the apparent deviation, global liquidity conditions continue to be a crucial factor in determining Bitcoin’s price. Central banks worldwide continue to maintain relatively accommodative monetary policies, with many still in rate-cutting cycles. The combination of ongoing quantitative easing measures and low interest rates creates an environment where alternative assets, such as Bitcoin, remain attractive to investors seeking yield and inflation protection.

Market analysts note that while the immediate correlation may appear weakened, the underlying fundamentals supporting Bitcoin’s bull case remain intact. The global22oney supply continues to expand, reaching all-time highs in many regions, which has historically been supportive of Bitcoin’s long-term price trajectory.

Technical Analysis and Market Outlook

Technical Analysis and Market Outlook

From a technical perspective, Bitcoin’s current price action suggests consolidation rather than a definitive end to the bull market. The cryptocurrency is trading within a range between $100,000 and $120,000, holding above its 200-day exponential moving average while maintaining a bullish long-term trend structure. Technical analysts suggest that a confirmed breakout above $112,000 could trigger a rally toward $120,000 or higher by mid-to-late June 2025.

The recent retracement from peaks above $100,000 to lows around $75,000 earlier in the year has been characterized by many analysts as a healthy correction within a broader bull market cycle rather than a trend reversal. Historical patterns from previous cycles suggest that such corrections are normal and often precede the next leg of upward momentum.

Market Sentiment and Future Projections

Current market sentiment remains cautiously optimistic despite the M2 deviation. Several prominent analysts maintain bullish projections for Bitcoin, with some forecasting prices reaching $130,000 to $135,000 by Q3 2025. These projections are based on a combination of technical analysis, cyclical patterns, and fundamental factors, including Bitcoin’s halving cycle dynamics and continued institutional adoption.

The cryptocurrency’s performance relative to traditional assets, such as gold, also suggests continued strength. Bitcoin is currently outperforming gold and other conventional hedges, indicating that investors still view it as a superior store of value in the current macroeconomic environment.

Conclusion

Rather than signaling the end of the bull run, Bitcoin’s apparent deviation from M2 money supply correlation may represent the natural evolution of a maturing asset class. As Bitcoin becomes more integrated into traditional financial systems and gains broader institutional acceptance, its price dynamics are likely to become influenced by a more diverse set of factors beyond pure monetary expansion.

The current market conditions, characterized by institutional support, regulatory clarity, and continued global liquidity expansion, suggest that the bull market remains intact, despite short-term deviations in correlation. While the relationship with M2 money supply remains important, Bitcoin’s price discovery mechanism is becoming more sophisticated and less dependent on any single macroeconomic indicator.

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