The memecoin frenzy at the pump.fun is hitting a wall, with the “end rate” of the platform below 1% for the fourth straight week.
The “graduation rate” is the term of the memecoin launchpad for tokens doing this through the incubation stage and become fully tradable in a solana decentralized exchange (DEX). In order to graduate, a token must meet specific liquidity and trading requirements.
Over the past four weeks, starting with Feb. 17, the end rate of pump.fun remained below 1% in the first time, Dune analytics data is displayed.
Pump.Fun’s Tanking Token Success Rate. Source: Dune analytics
The graduation rate of pump.fun is Never been high. The best performance of the platform was in November when 1.67% of Memecoins moved to the open market. However, the amount of tokens launched on the platform at a time made this percentage more meaningful than it is today. During the Sunday starting November 11, 323,000 tokens were created on pump.fun, which means the 1.67% end rate translated to approximately 5,400 tokens entering Solana’s defi economy in a single week.
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With a quantity of token creation Reduction in both pump.fun and solanaWeekly token graduations fell to a four -week average of nearly 1,500 tokens at the time of writing, according to Dune.
Memecoins die, and they do not respond to positive market signals
The downfall of pump.fun graduation rate reflects the waning investor of appetite for memecoins, developed a The reputation as degenerate lottery tickets or fast cash grabs for their creators.
Many political figures have Also launched their own memecoinswith US president Donald Trump. His token dropped 84% from all the time high set on January 19, according to Coingecko.
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The struggles of Memecoins continue despite improving liquidity, according to Matrixport. In February, the analysts of Matrixport mentioned that A boosting US dollar forced bitcoin prices by tightening the dollar denomination of liquidity.
Since then, the US dollar has weakened. Last month, the US Dollar Index (DXY), which measures the dollar against a basket of major currencies, which sank to 107.61 on Feb. 28 before going down to 103.95 on March 14th.
DXY performance in the last month shows the weakening of the US dollar. Source: Tradingview
“The US dollar has recently weakened, leading to a rebound on the liquidity indicators and some marginal improvements in inflation data. Despite these positive changes, Memecoins – previously one of the strongest narratives during this bull market – continued to struggle, with no bright recovery,” Matrixport said.
Bitcoin caught in Memecoin Aftershocks
The difficult memecoin market contributed to a $ 1 trillion wipeout in the crypto market capitalization, according to Matrixport.
“The redistribution of wealth can lead to investors to remain careful about eliminating additional capital, causing rebounds-even though those who have triggered better than the expected inflation data-which is limited,” the report mentioned.
Matrixport’s analysts are warning that this may lead to further decline in Bitcoin, with a potential reetenhy to the lower $ 73,000 – a level that they believe will provide “strong support.”
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