TL;DR
- Less than 1% of memecoins on Pump.fun manage to “graduate” and become tradeable assets on Solana’s DEX.
- The volume of token creation on the platform has plummeted, further reducing the survival rate of these cryptocurrencies.
- Despite the recovery of liquidity in the crypto market, memecoins continue to lose value, impacting even Bitcoin and other established cryptocurrencies.
The memecoin frenzy on Pump.fun seems to be fading fast. The platform, known for its ease of launching tokens on the Solana blockchain, is now in its fourth consecutive week with a graduation rate below 1%. This means that fewer than 1 in 100 tokens make it past the incubation phase and become an asset with enough liquidity to be traded on Solana’s decentralized exchanges (DEX).
Historically, Pump.fun’s graduation rate has never been high. Its best performance was in November 2024, when it hit 1.67%, driven by a massive wave of token creation. At that time, over 323,000 memecoins were launched, and while only a small percentage survived, the absolute number of tokens in the market was significant. However, with the recent decline in new token creation, the number of memecoins successfully graduating has plummeted to a weekly average of just 1,500.
Memecoins Struggle Against Market Indifference
Despite the initial euphoria surrounding memecoins, investor sentiment seems to be shifting. These tokens have been labeled as “degenerate lottery tickets” or simple schemes to make quick money. Even political figures like Donald Trump have launched their own memecoins, though many have lost over 80% of their value since their peak.
Additionally, memecoins are not responding positively to signs of market recovery. The weakening of the U.S. dollar has improved liquidity in financial markets, which theoretically should have benefited speculative cryptos. However, data from Matrixport shows that memecoins continue to display weakness, with no signs of short-term recovery or renewed investor confidence and enthusiasm.
Bitcoin and the Crypto Market Feel the Impact
The collapse of memecoins doesn’t just affect their investors, it has also contributed to a $1 trillion drop in the total crypto market capitalization. Matrixport warns that this capital redistribution could lead to increased caution among investors, significantly limiting market rebounds even when macroeconomic data is favorable. In this scenario, Bitcoin could experience a correction down to $73,000, a level that many analysts consider a key support.
According to many experts, memecoins will continue to exist, but only those with real utility, strong communities, and long-term vision will survive.
