by Nayab Fatima
The tokens on Pump.fun are dying fast from a record-breaking market crash where just one percent of tokens continue to survive their development period. Pump.fun now has the longest streak of below 1% graduation rates as memecoins continue to lose popularity and pressure the rest of crypto markets.
The “graduation rate” on Pump.fun tracks how many tokens successfully satisfy the Solana DEX criteria for trading and liquidity status. Data from Dune Analytics shows this market first reached the below 1% graduation rate on February 17 and has since stayed there. These declining memecoin trends create doubts about whether the sector can survive across its risky yet rewarding style of investments.
Pump.fun’s Low Graduation Rates
The system has always produced small numbers of successfully graduating projects in its history. The platform delivered its strongest results during November 2024 by advancing just 1.67% of all tokens. During this period many tokens were introduced into the Solana DeFi environment yet just 5,400 of them achieved successful token launches.
The decrease in newly released tokens accompanies a four-week average of 1,500 graduating tokens because investors are buying fewer tokens. Investors are showing reduced interest in memecoins because they label these tokens as short-term speculation plays that promote giveaways for project founders.
Several government officials tested their luck by joining the space but achieved different outcomes. After reaching its peak on January 19 Former US President Donald Trump’s memecoin suffered an 84% decline in market value according to CoinGecko records. Even top supporters found their memecoin investments ending in failure.
Pump.fun, Liquidity, and Market Conditions
Despite better access to funds the zone of memecoins cannot return to its earlier success level. In February Matrixport experts indicated that rising U.S. dollar valuations during February led to decreased Bitcoin market activity. As the U.S. Dollar Index declined from 107.61 on February 28 to 103.95 on March 14 the meme coin market continued its troubles.
Matrixport noted the U.S. dollar weakness increased money availability and slightly rose inflation metrics. Memecoins show no signs of returning to a positively performing sector during this market cycle despite market movements.
The continuous falls in memecoin values caused an $1 trillion market capitalization decrease in all cryptocurrencies per Matrixport data. Market experts predict that severe crypto asset value drops may prevent investors from adding new funds to their portfolios even with good market data.
According to Matrixport investors will think twice before returning their funds into the market causing potential price gains to weakly react. They predict Bitcoin will keep dropping until test the $73,000 area which will act as solid support.
The cryptocurrency industry stays alert behind Pump.fun’s memecoin decline to see if liquidity growth will attract new buyers or if the market will keep its downward swing. Memecoin’s poor performance hurts efficiency in the crypto sector though it used to lead market growth before this current downturn.
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