Arc Strips Away Conditions for Meme Coin Frenzy
Circle's Arc network is set to launch on September 16, and analysts are wondering if it will experience a meme coin frenzy like Robinhood Chain did after its own launch. However, according to SoSoValue, this is unlikely due to structural differences between the two networks.
The conditions that made Robinhood Chain's boom possible - revenue from meme trading, an existing retail user base, a native token's buyback-and-burn mechanism, and a fully public mempool - do not align with Arc. Its validator set consists of reputable institutions like Visa, Mastercard, and BlackRock, which are more concerned about their reputation than hosting speculative activity.
Arc's distribution channels run through card networks and asset managers rather than retail traders, and the ARC token has not been launched yet. Additionally, gas is paid in USDC, and there is no buyback mechanism to prop up prices. The network also closed its public mempool entirely, making it harder for bots to front-run trades.
SoSoValue argues that while Arc's EVM compatibility and the launch of Uniswap v4 and Aerodrome on day one might make some meme activity possible, it would be harder to start and easier to unwind than what happened on Robinhood Chain. The comparison is relevant because Robinhood Chain's boom has already cooled down, with daily revenue falling from $4 million to $1.06 million by the end of last week.