Meme Insider
In the fast-paced world of cryptocurrency, where metrics fly around like confetti at a bull market party, it's easy to get caught up in the hype. But according to a recent post from Solana Legend, a prominent figure in the Solana ecosystem and co-founder of Frictionless Capital and MonkeDAO, we might be looking at the wrong indicators for long-term success.
Solana Legend shared this nugget of wisdom: "App revenue is a FAR more important indicator in the long run than stablecoin volume or supply. You use stablecoins to make revenue. They are a FEATURE not a PRODUCT." This statement cuts through the noise, reminding us that while stablecoins like USDC or USDT are essential tools for transactions and liquidity, they're not the end goal. They're more like the plumbing in a house—necessary, but you don't buy a house just for its pipes.
For those new to the terms, stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to fiat currencies like the US dollar. They're great for reducing volatility in trades or payments. App revenue, on the other hand, refers to the actual income generated by decentralized applications (dApps) or platforms built on blockchains. This could come from fees, subscriptions, or in-app purchases—real money flowing in from users engaging with the product.
Why does this matter for meme token enthusiasts? Meme tokens, those fun, community-driven coins often inspired by internet culture, have exploded in popularity on chains like Solana. Projects like Dogwifhat or Bonk have shown how memes can drive massive adoption and market caps. But as the space matures, sustainability becomes crucial. Many meme tokens start as jokes but evolve into ecosystems with utilities, such as games, NFTs, or social platforms. Here, building apps that generate revenue is what separates fleeting hype from lasting value.
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about it: stablecoin volume might spike during a trading frenzy, signaling short-term interest. But if your meme token's ecosystem isn't producing apps that users pay to use—say, a decentralized social network where creators earn from tips or a gaming app with in-game economies—that volume could dry up overnight. Solana Legend's point emphasizes prioritizing product development over just facilitating transfers. Stablecoins enable the revenue, but the app is what captures it.
This perspective aligns with broader trends in web3. Chains like Solana are seeing a surge in consumer-facing apps, from DeFi protocols to socialfi platforms. For meme token projects, integrating revenue-generating features can boost token utility and holder retention. For instance, if a meme token launches an app where users stake tokens to access premium content or participate in exclusive events, that creates ongoing revenue streams.
Replies to the post echoed this sentiment. One user compared judging projects by stablecoin volume to praising a restaurant based on its napkins—funny, but spot on. Another noted, "Liquidity is fuel; the product is the engine." It's a reminder that in blockchain, especially for meme-driven projects, the real magic happens when you build something people want to use and pay for.
As we navigate the evolving landscape of meme tokens, keep an eye on those projects shifting from pure speculation to revenue-focused innovation. It's not just about riding the wave; it's about building the surfboard that lasts. For more deep dives into meme token strategies and blockchain news, stick around at Meme Insider—we're here to help you level up in web3.
