Developer explains why Meme Coin is shifting ground on Ethereum

Code builder Foobar criticizes Ethereum, accusing its developers of ignoring important improvements. This shift has led projects, including meme coin issuers, to adopt alternative protocols, including Layer 2 and newer blockchains like Solana, which boast more features and higher scalability.

Ethereum developers are blocking mainnet updates

Meet Developer X opinion The main reason is that these upgrades are blocked by core and client developers. In particular, Foobar cites long delays for features such as Trie State Storage Optimization (TSTORE) and Externally Owned Accounts (EOA) batch transactions. The developer also noted the lack of block gas limit increases from 2021.

The developer added that the lack of mainnet updates and opcode improvements leading to the implementation of these proposals could be the reason why decentralized apps (apps) launching on Ethereum are “leaking huge amounts of value” due to high fees and restrictions.

TSTORE and EOA batch transactions are a suggestion that Ethereum could scale better if they ever see the light of day. In particular, TSTORE proponents delivered solutions that address storage bloat to improve performance. On the other hand, EOA can save on gas fees by bundling transactions from the same sender.

Meanwhile, Etherscan data shows that the block gas limit has been capped at approximately 30 million from August 9, 2021. Afterwards, Ethereum throughput is still low, and gas fees are higher considering high on-chain activity.

The failure of clients to integrate these offerings, the developers say, makes Ethereum unusable for “interesting apps that require moderate complexity.” As a result, many projects are migrating to layer 2, such as Base, Arbitrum, and Optimism, or completely different blockchains, such as Solana and Avalanche, due to the limitations of the Ethereum mainnet.

Meme Coins Find Home in Solana and More

As of mid-February 2024, reading the popularity of emerging projects, more meme coin developers are deploying them on high-throughput and low-fee platforms such as Solana, Avalanche, and even Base. Meme coins like Bonk, Honk, and even the successful Bald on Base are examples.

Meanwhile, meme coin projects on Ethereum, such as Pepe Coin (PEPE), appear to be losing market share as Shiba Inu, for example, launches Shibarium to offer lower transaction fees for users.

Foobar believes that the lack of improvements to the Ethereum mainnet is the reason why Uniswap v4 has not been released yet. The new version of Uniswap, a popular decentralized exchange (DEX) that supports Ethereum token exchanges, has not yet released its latest version.

Based on existing documentation, v4 includes new features including Hooks. Supporters argue that the tool will make DEXes more flexible and attract more users once launched.

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