The Doodles NFT collection reached a $16 million trading volume following the announcement of the Solana-based meme coin $DOODS, signaling a strengthened dual-chain approach in the NFT market.
Strategic Evolution in the NFT Landscape
The major achievement by Doodles is linked to the announcement of a new Solana-based meme coin, $DOODS. The trading volume became the second-largest in Doodles' history, following $245 million when Pudgy Penguins announced their token $PENGU. After the announcement, Doodles NFT's floor price surged to 6.3 Ethereum before settling around 4 ETH.
Dual-Chain Approach for NFT Projects
Recent achievement and high trading volume of the Doodles show a strategic shift of the NFT market towards a dual-chain approach. This strategy was used by Pudgy Penguins and Azuki, who launched their tokens on Solana. The dual approach helps NFT projects maintain their collections on Ethereum while leveraging Solana's token trading advantages. An important role in this change was played by the appointment of founder Burnt Toast to the CEO position in early 2024. The project promised a significant 68% token allocation to its community, though specific distribution details are still unknown.
Challenges and Prospects
However, the trend shows signs of reduced returns. Both $PENGU and $ANIME have experienced substantial declines of 69% and 40% respectively over the past month, despite initial enthusiasm. The migration to Solana for token launches is driven by practical considerations. Ethereum’s higher transaction fees have become a limitation for retail traders, while Solana offers a developed memecoin ecosystem with high liquidity and an active trading community, providing a more accessible platform for frequent trading and smaller transactions.
The dual-chain approach to NFT trading is gaining interest but requires caution due to potential declines. The move to Solana facilitates trading through reduced transaction costs.
