Doodles NFT Reaches $16 Million Weekly Volume with $DOODS Announcement

The Doodles NFT collection saw its second major trading volume spike in 2024, reaching $16 million in weekly volume following the announcement of its Solana-based memecoin $DOODS. This surge represents the second-highest weekly volume for Ethereum NFTs, following a $24 million peak during the Pudgy Penguins $PENGU token announcement.

Doodles’ floor price rose to 6.3 ETH during the announcement before settling around 4 ETH. While the Doodles collection achieved significant volumes, major ETH NFTs averaged only $46 million in volume over the past few weeks.

The trend of Ethereum NFT projects launching Solana-based tokens continues. Doodles joins Pudgy Penguins, which launched $PENGU on December 17, and Azuki with its $ANIME token in this strategy. The project announced that 68% of $DOODS tokens will be allocated to the community, though specific distribution mechanisms remain unclear.

Previous NFT token launches indicate diminishing returns for early participants. $PENGU has dropped 69% in value over the past 30 days, while $ANIME has fallen 40%. These declines occurred despite initial excitement and trading volume spikes.

The shift towards token launches coincided with leadership changes at Doodles, with founder Burnt Toast stepping into the CEO role at the end of January 2024.

NFTs and Memecoins Converging on Solana: Dual-Chain Strategy and Diminishing Returns

The convergence of NFTs and memecoins on Solana seems to be driven by several factors. Ethereum’s higher transaction fees make frequent trading and small transactions less economical for retail participants. Solana’s established memecoin ecosystem offers ready liquidity and an active trading community. Projects can maintain their premium NFT collections on Ethereum while capturing trading volume and engagement on Solana.

This dual-chain strategy may signal NFT projects adapting to changing market conditions, though declining token prices suggest diminishing returns as more projects adopt similar strategies.

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