Synthetix (SNX) founder Kain Warwick explains how new phase of meme coin mania can boost L2s’ massive adoption
Seasoned DeFi developer Kain Warwick recalled the popularity of Uniswap (UNI), which attracted FOMO-based high-risk traders, and stated that Ethereum-based L2 scalers might be on the eve of their own “iPhone moment.”
Why does crypto segment need meme coins on L2?
Once the first meme coin rallies on an Ethereum-based second-layer network, the audience will migrate outside of Ethereum (ETH). Driven by the expectations of enormous profits, newbie users will learn how to use cross-network bridges to move their value to new chains.
The first meme coin that blows up on L2 will shift this equilibrium. We’ve seen people learn to use uniswap to fomo into things, I think they will learn how to bridge to an L2 if some random thing is blowing up… https://t.co/sPslZvYtWA
— kain.eth (@kaiynne) May 5, 2023
Warwick shared this take commenting on a statement about meme coin traders’ willingness to pay high fees, but not explore other blockchains like L2 networks Optimism (OP), Arbitrum (ARB) or alternative blockchains, including Avalanche (AVAX).
He recalled that some “FOMO”-motivated enthusiasts managed to migrate to Uniswap for the same reasons, i.e., to buy early-stage coins cheaper before they are listed on mainstream centralized exchanges.
As such, L2s and bridges to Ethereum (ETH) might onboard the next generation of traders once meme coins like Pepe (PEPE) start rallying there.
Yesterday, amid the euphoria around the Pepe (PEPE) listing on Binance (BNB), the Ethereum (ETH) network became almost unusable due to enormous fees.
Game over for PEPE?
Yesterday, the average transaction fee for the Ethereum (ETH) network spiked above $30, which is the highest since the Terra (LUNA) ecosystem collapse in early May 2022.
As covered by U.Today previously, the global crypto community is captivated by the euphoria around new meme coins led by Pepe (PEPE), a frog coin launched three weeks ago.
In just 20 days, it rallied by over 10,000%. However, its Binance (BNB) listing might be interpreted as the top of its price movement. In the last 24 hours, PEPE lost over 25% on major exchanges.