Doodles NFT Sees $16 Million Surge: Is This the Future of Dual-Chain Strategy?

Doodles NFT Sees $16 Million Surge: Solana Tokens vs. Ethereum NFTs – A Growing Shift

Doodles NFT Sees $16 Million Surge – In early 2024, the Doodles NFT collection saw a remarkable surge in trading volume, reaching an impressive $16 million in weekly volume. This spike came after the announcement of the Solana-based memecoin $DOODS, making it the second-largest weekly trading volume for an Ethereum-based NFT collection. The only higher peak occurred during the Pudgy Penguins’ $PENGU token launch, which saw a massive $24 million in weekly volume.

Floor Price Rises, Then Settles

Following the $DOODS announcement, the Doodles NFT floor price skyrocketed to 6.3 ETH, before it eventually settled around 4 ETH. While this represents a major spike for the Doodles collection, the broader Ethereum NFT market has seen more muted results. Over the past few weeks, major ETH NFTs combined have averaged only $46 million in volume, indicating a more cautious market trend.

Ethereum Projects Turning to Solana Tokens

The trend of Ethereum-based NFT projects launching Solana-based tokens has continued to grow, with Doodles now joining the ranks of Pudgy Penguins and Azuki. Both these projects had already launched their Solana tokens — $PENGU and $ANIME, respectively. Doodles’ $DOODS token will allocate 68% of its total supply to the community, though the specific mechanics of the distribution remain unclear. However, history has shown that early participants in similar token launches, such as $PENGU and $ANIME, have experienced significant price declines. In fact, $PENGU has dropped 69% in value in the past 30 days, while $ANIME saw a 40% decrease during the same period.

Solana’s Role in the NFT Market Shift

The move towards Solana for NFT-related tokens is driven by multiple factors. Ethereum’s higher transaction fees make it less attractive for retail traders who prefer smaller, more frequent transactions. Meanwhile, Solana’s established memecoin ecosystem offers greater liquidity and a more active trading community. This allows projects to maintain their premium NFT collections on Ethereum while capturing volume and engagement on Solana.

NFT Projects Face New Market Realities

Despite the initial success of token launches, the declining values of $PENGU and $ANIME suggest diminishing returns for early participants as more projects adopt a similar strategy. As NFT projects adapt to changing market conditions, it remains to be seen whether dual-chain strategies will continue to deliver the expected results.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.