The Doodles NFT collection experienced its second major trading surge of 2024, hitting $16 million in weekly volume after announcing its upcoming Solana-based memecoin, $DOODS. This spike marks the second-highest trading week for Doodles, trailing only behind the $24 million peak during Pudgy Penguins’ $PENGU token launch.
The floor price of Doodles NFTs surged to 6.3 ETH following the $DOODS announcement before settling around 4 ETH. Despite Doodles’ impressive performance, overall Ethereum NFT trading activity has remained relatively modest, with major ETH collections averaging just $46 million in combined weekly volume in recent weeks.
The decision to launch $DOODS on Solana highlights a growing trend among Ethereum NFT projects expanding into the Solana ecosystem. Doodles now joins the ranks of Pudgy Penguins, which launched $PENGU in December, and Azuki, which introduced its $ANIME token, in adopting Solana-based tokens to boost community engagement and ecosystem growth.
In line with fostering community involvement, Doodles announced that 68% of $DOODS tokens will be allocated to its community. However, specific details regarding the distribution mechanics have yet to be revealed, leaving holders and investors eager for more information.
The Trend of NFT Projects Launching Native Tokens
While Doodles’ announcement of its Solana-based memecoin $DOODS has generated a surge in trading activity and excitement, recent trends in the NFT space suggest that such token launches might not guarantee long-term success. Previous high-profile NFT token launches have shown a pattern of initial hype followed by significant price declines. For instance, Pudgy Penguins’ $PENGU has plummeted by 69% over the past month, while Azuki’s $ANIME token has dropped 40%, despite both tokens experiencing strong initial trading volume and community enthusiasm.
The Rise of Dual-Chain Strategies: Ethereum NFTs, Solana Tokens
Doodles’ $DOODS launch comes amid significant leadership changes, with founder Burnt Toast stepping into the CEO role at the end of January 2024. Under his leadership, the project seems to be embracing a broader trend: NFT collections leveraging dual-chain strategies to maximize engagement and trading volume.
Ethereum-based NFT projects are increasingly turning to Solana for token launches, driven by practical and economic considerations. Ethereum’s higher transaction fees often make frequent trading and smaller transactions less attractive for retail investors. In contrast, Solana offers lower fees and a thriving memecoin ecosystem, providing ample liquidity and an active trading community. This allows projects like Doodles to maintain their premium NFT collections on Ethereum while tapping into Solana’s vibrant token markets for expanded reach and engagement.
However, the strategy comes with its challenges. As more NFT projects adopt similar dual-chain approaches, the market is witnessing diminishing returns on new token launches. The steep price declines of $PENGU and $ANIME highlight potential risks for $DOODS, suggesting that while these launches may boost short-term trading volumes, sustaining value and community interest over time remains a significant hurdle.
Quick Facts:
- Doodles NFT collection reached $16 million in weekly trading volume following the $DOOD memecoin announcement.
- $DOOD is a Solana-based token designed to enhance the Doodles ecosystem.
- Multiple NFT projects are launching native tokens to boost community engagement and ecosystem growth.
