Reports from Cointelegraph indicate a significant decline in the success of memecoins on the Pump.fun platform, with less than 1% managing to graduate. The graduation rate on the memecoin launchpad denotes the percentage of tokens that successfully transition from the incubation phase to full trading on a Solana decentralized exchange (DEX), provided they meet specific trading and liquidity prerequisites.
For the past month, starting February 17, Pump.fun has seen its graduation rate remain under 1% – a first in its history. Despite the platform’s graduation rate never being impressively high, with its peak at 1.67% in November, the sheer number of tokens launched on the platform at that time made the percentage more significant. In the week starting November 11, roughly 323,000 tokens were created on Pump.fun, translating to about 5,400 tokens entering Solana’s DeFi economy in a week.
As the volume of token creation decreases on both Pump.fun and Solana, the weekly token graduations have dwindled to an average of approximately 1,500 tokens at the writing time, according to Dune Analytics. The declining graduation rate points to a lessening investor interest in memecoins, which have earned a reputation for being quick cash grabs for their creators or degenerate lottery tickets.
Memecoins are continuing to struggle, despite improving liquidity conditions, according to Matrixport. In February, Matrixport analysts observed that a strengthening US dollar was applying pressure on Bitcoin prices by tightening dollar-denominated liquidity. However, the US dollar has weakened over the past month, leading to some marginal improvements in inflation data and a rebound in liquidity indicators.
Despite these positive shifts, memecoins, which were once one of the strongest narratives during this bull market, continue to struggle significantly, with no apparent recovery. Matrixport’s report highlights that the struggling memecoin market has contributed to a $1 trillion wipeout in the crypto market capitalization.
This wealth redistribution could cause investors to remain cautious about deploying further capital, limiting rebounds. Matrixport analysts warn that this could further lead to Bitcoin declines, potentially retracing to as low as $73,000 — a level they believe will provide “strong support.”
