Crypto: The Hemorrhage of Memecoins on Solana Continues to Worsen

Memecoins, often compared to flash-in-the-pan phenomena, show signs of waning, particularly on Solana. Recent statistics are far from favorable for these tokens on this blockchain. Indeed, Solana’s Pump Fun platform fails to turn these ephemeral creations into lasting successes. Let’s dive into the details to understand what’s really happening in this rapidly changing universe.

Crypto meme and Solana: A history of failure rates

Yet another crypto meme game over story! On Solana’s Pump Fun platform, almost all memecoins fail miserably. According to Dune Analytics data, only 1.41% of tokens created via Pump Fun manage to reach Raydium, a DeFi platform on Solana.

This figure has fluctuated between 1.21% and 1.41% since May, with a historical peak of 2.56% last February. These statistics do not favor memecoins, which seem unable to maintain a sustainable value in the market.

2/23

We're starting to flush out memes.

The "graduation rate" of coins on Pump Fun (those that made it to $69k and got listed on a dex) is stagnant around 1.4%https://t.co/fCruRRnvZW

(h/t @0xBreadguy)

— Adam Cochran (adamscochran.eth) (@adamscochran) August 1, 2024

Adam Cochran, partner at Cinneamhain Ventures, revealed in a post on X that about 1.4% of projects listed on a DEX reach 69,000 dollars.

Moreover, no new token has actually surpassed the 20 million dollar mark in Fully Diluted Valuation (FDV). This demonstrates that the memecoin cycle seems to be coming to an end. And this in spite of the resilience of Dogecoin (DOGE), Shiba Inu (SHIB), and others.

As Cochran says, “we are rinsing the meme cycle”.

Memecoins: A rare success story

Despite these disappointing numbers, a few memecoins still manage to emerge. Bread, a Web3 developer and crypto commentator, noted that out of the 1.58 million tokens created, only 22,300 reached Raydium.

However, it’s important to note that the ease of project creation on Pump Fun could explain this low success rate. Indeed, launching a token on this platform incurs a transaction fee of 1% until the market value reaches a certain threshold.

Key statistics reveal that:

• Out of 1.58 million tokens created, only 22,300 reached Raydium;
• In July, Pump Fun generated approximately 864,000 dollars in 24 hours;
• This surpassed Ethereum’s 550,000 dollars in the same period.

These rare successes show that despite the many failures, memecoins still contribute to the platform’s revenues.

Despite an overall negative outlook for memecoins on Solana, positive figures exist, notably thanks to DEX platforms like Raydium. The crypto market remains unpredictable, but these data offer a glimmer of hope for savvy investors.