Doodles NFTs Record $16 Million in Trading Volume Following $DOODS Memecoin Announcement
The Doodles NFT collection just saw one of the biggest spikes of 2024, with weekly trading volume hitting $16 million following the announcement of the $DOODS memecoin launch on the Solana platform. This is the second-highest spike for an Ethereum NFT this year, behind only the $PENGU token boom from Pudgy Penguins at $24 million.
The Doodles NFT floor price hit 6.3 ETH following the announcement before adjusting to around 4 ETH. However, the total trading volume of major NFTs on Ethereum over the past few weeks has only averaged $46 million.
Solana Token Launch Trend
Ethereum NFT projects issuing tokens on Solana is becoming a clear trend. Doodles now joins Pudgy Penguins with $PENGU and Azuki with $ANIME in leveraging the Solana ecosystem. According to the team's announcement, 68% of the total supply of $DOODS will be distributed to the community, however, the specific distribution mechanism has not been revealed.
Despite the great interest in this model, data from previous launches shows that the returns are decreasing for early investors. The $PENGU token lost 69% of its value within 30 days, while $ANIME dropped 40% despite both initially seeing explosive trading volumes.
Why NFTs are Moving to Solana
The move of Ethereum NFT projects to deploy tokens on Solana reflects an adaptation to current market conditions. Ethereum has high transaction fees, making frequent trading inefficient for retail investors. Meanwhile, the memecoin ecosystem on Solana has been shaped with high liquidity and a vibrant trading community.
With a dual-chain strategy, projects still maintain the value of NFT collections on Ethereum but simultaneously exploit the trading volume and engagement on Solana. However, this trend also raises questions about market saturation, as more and more projects adopt similar strategies but token prices tend to decline after the initial growth phase.
This change comes amid a leadership transition at Doodles, with founder Burnt Toast expected to take over as CEO by the end of January 2024. Combining NFTs and memecoins on Solana may provide a strategic advantage, but the long-term effectiveness remains to be seen.
