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Discover the challenges and trends surrounding Solana memecoins as most fall to zero, highlighting key insights from data and expert opinions.
Solana’s memecoin creation platform, pumpfun, has seen its tokens nearly vanish in terms of market value. According to Dune Analytics, the success rate of tokens produced on pump.fun integrating into the Solana-based Raydium DeFi protocol stands at a mere 1.41%. This figure has been fluctuating between 1.21% and 1.41% since May, with an all-time high of 2.56% recorded on February 16.
Prominent figures in the crypto community have voiced their perspectives on this trend. Adam Cochran, a partner at Cinneamhain Ventures, emphasized the unsustainability of the memecoin trend by stating, “This clearly shows that the memecoin fad is finally tapering off.” On the other hand, crypto analyst and Web3 developer, Bread, noted the harsh reality of pumpfun’s memecoin market by admitting, “I hadn’t realized how brutal the memecoin trend on pump.fun actually was,” adding that only 22,300 of the 1.58 million tokens reached Raydium.
Analysts suggest that the success rate on pump.fun is not necessarily a reflection of the overall memecoin market. Instead, it highlights how accessible memecoin creation can be on this platform. Crypto influencer Bunjil, addressing his 56,900 followers, remarked, “Pump fun didn’t ruin memecoins; it merely unveiled the sausage-making process and simplified it significantly.” Though few tokens reach the wider market, the revenue generated from creation fees has proven substantial. Pump.fun charges a 1% transaction fee until a token reaches a certain market cap threshold.
The platform has also gained traction among celebrities like Caitlyn Jenner, Iggy Azalea, and Jason Derulo, who have joined the memecoin creation trend. Despite limited market success, the attraction of public figures continues to bolster the platform’s visibility and user engagement.
The Solana memecoin trend serves as a critical study in the volatility and challenges within the crypto market. As more data comes to light, it becomes evident that while pumpfun has democratized token creation, the business model’s sustainability remains questionable. Investors and enthusiasts are encouraged to conduct thorough research before engaging in memecoin investment.
The post Solana Memecoin Platform Pump.fun Sees Majority of Tokens Hit Zero appeared first on COINOTAG NEWS.
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