The news of Poodlana, a Solana base meme coin listing on Raydium, caught the attention of investors, resulting in an instant increase of 350% in user activity on the Uniswap Layer 2. The presale of Poodlana raised $6.3M on the exchange and the price of the meme coin is rising after every 72 hours, before listing.
The current price of meme coins in the presale is $0.0499, but after two days and two hours, the token will spike to $0.0539. With the shift in market dynamics, interest rises in innovative token projects and decentralized finance.
According to Dune Analysis, the user interaction with Uniswap on L2 significantly increased from May to July. The user interaction increased from 1.82 million to 8.93 million, a calculated rise of almost 350%.
After hitting a peak of $33.6 billion in March, the monthly trading volume on the platform fell by 31% to $23.2 billion in June and then dropped another 12% to $20.5 billion in July. This 39% decline from May to July suggests that although more people are using Uniswap on Layer 2 networks, they might be making smaller trades.
The dramatic increase in user interaction on the swap and the drop in the trading volume raise concerns about the quality of users on the Swap.
The experts noted this pattern similar to a pattern before the Sybil attack where users create multiple fake addresses to manipulate the protocol and grab the airdrops.
After a deeper inspection, the data shows that 80% of Uniswap’s active traders in July were on Coinbase’s Layer 2 network, Base, which is believed to be the main hub for Sybil activity.
When Base is excluded from the data, Uniswap’s unique monthly addresses on Layer 2 networks have decreased since April. Although not all activity on Base is likely due to Sybil attacks, the situation raises concerns. The rapid rise in users on Layer 2s, especially on Base, may not represent genuine growth but could be driven by speculation in hopes of future rewards.
Poodlana Sets the Stage for Launch
Poodlana, “The Hermès of Crypto,” is a Solana-based meme coin popular for its high fashion and poodle-themed branding. The presale of the token will end on Aug. 16 and will start its trading on the Raydium exchange with a price of $0.060.
The token is enjoying its early success by raising $6.3 million in funds, as the token is getting attention from an Asian market, especially from the markets of Korea and Japan. The project attracted more than 16000 followers across its social media platforms and engaged its followers through weekly meme contests, exclusive presale events, and AMAs.
It also encourages its early users by offering them a cheap price, as the price rises every 72 hours. The project has bigger plans than the initial DEX listing, it aims to list Poodlana on all famous exchanges to increase its accessibility and liquidity.
