- Cardano’s new memecoin platform, Snek.fun, has quickly gained traction despite initial technical issues, but it has yet to boost ADA’s price.
- With a higher fee structure and ongoing bearish trends, its long-term impact on ADA remains uncertain.
Cardano has recently introduced Snek.fun, a memecoin creation platform inspired by Solana’s Pump.fun, which previously catalyzed a 130% surge in SOL’s price in just two months. Pump.fun’s success was driven by the creation of over 500,000 tokens, generating a remarkable $100 million in revenue. With such impressive results, the crypto community is eager to see if Snek.fun can deliver similar gains for ADA.
Technical Hiccups and Early Success
Snek.fun’s launch wasn’t without its challenges. The platform experienced significant technical difficulties due to overwhelming user demand, with over 20,000 users attempting to create tokens within the first ten seconds, leading to server overloads. Despite these setbacks, Snek.fun quickly gained traction. Within hours, three tokens on the platform surpassed a market cap of 1 million ADA, and the system has since stabilized to accommodate smoother transactions.
Fee Structure and Long-Term Engagement
One notable difference between Snek.fun and its counterparts on Solana and Tron is its fee structure. Snek.fun charges 25 ADA (approximately $8) per token creation, which is higher than the fees on Solana and Tron. This elevated fee might pose a challenge for long-term user engagement and widespread adoption. Whether this higher cost will deter users or enhance the platform’s appeal remains to be seen.
Cardano’s Current Price Analysis
Despite the buzz surrounding Snek.fun, ADA’s price remains stagnant. Cardano has been on a downtrend since March 2024, with the price trading below key exponential moving averages (EMAs). Although ADA recently rebounded from a support level of $0.300, it struggled to break past the 50-day EMA, highlighting ongoing weakness.
At present, Cardano is trading at $0.322, reflecting a 2.22% intraday gain. Its 24-hour trading volume stands at $328.95 million, and its market cap is $11.58 billion, with a circulating supply of 35.96 billion ADA. Year-to-date, ADA has dropped by approximately 45.79%, and in the past three months, it has declined by about 26.32%. The coin has also fallen by 7.20% in the last week.
Bearish Momentum Persists
TradingView’s technical summary shows a predominantly bearish outlook for ADA. Out of 26 indicators, 14 signal a sell, 10 are neutral, and only 2 suggest a buy. This indicates that, despite Snek.fun’s launch, Cardano’s ADA continues to face bearish momentum and remains below critical EMAs.
While Snek.fun has quickly established itself as a popular memecoin platform, its impact on ADA’s price remains uncertain. With ongoing technical issues and a higher fee structure compared to its competitors, the potential for ADA to see a significant price boost remains in question.
