Doodles NFT Sees $16M Weekly Volume Surge Following $DOODS Memecoin Launch on Solana

Doodles NFT has seen a surge in volume, hitting $16M in just one week following the launch of the Solana-based $DOODS memecoin. This is the second-highest weekly volume for an Ethereum NFT collectible in 2024, behind only Pudgy Penguins’ $24M weekly volume upon the launch of the $PENGU token.

The Doodles NFT floor price surged to 6.3 ETH around the time of the $DOODS announcement before stabilizing around 4 ETH. While Doodles has seen high volume, other NFT collectibles on Ethereum have averaged around $46M in volume in recent weeks.

The trend of Ethereum NFT projects launching Solana-based tokens is growing in popularity. Doodles joins Pudgy Penguins and Azuki in a new token launch that leverages Solana’s liquidity and vibrant trading community. Doodles has announced that 68% of $DOODS tokens will be distributed to the community, although distribution details have yet to be made clear.

Previous token launches have seen diminishing returns, with $PENGU losing 69% of its value in 30 days, and Azuki’s $ANIME losing 40%. Still, NFT projects have capitalized on the initial opportunity to increase trading volume. This shift comes after a leadership change at Doodles, with Burnt Toast founder taking over as CEO in late January 2024.

One of the factors driving the convergence of NFTs and memecoins on Solana is higher transaction fees on Ethereum, which makes small, frequent transactions less efficient for retail users. Solana’s memecoin ecosystem offers good liquidity and attracts an active trading community. NFT projects are currently adopting a dual-chain strategy, maintaining premium collectibles on Ethereum and mining the benefits of Solana.

This strategy can help NFT projects adapt to market changes, although the decline in token values suggests that profits are shrinking as more projects adopt similar strategies.