Solana memecoins have seen a dip in trading activity, but data shows that the most popular venue for trading these tokens gave rise to only a few highly profitable traders.
Posted August 20, 2024 at 4:24 am EST.
The Solana memecoin frenzy may be wearing off as trading volumes have been declining week over week, according to data from Dune.
“Feels like Solana memecoins might be done,” said pseudonymous crypto trader Axel Bitblaze on X.
“The days of easy gains seem to be over, and even the big memes are losing steam.”
Solana-based marketplace Pump.fun was the primary source of this memecoin trading activity. At one point, the platform accounted for 70% of all token launches on Solana, and over 1.18 million tokens have been launched on it since its inception.
Data shared by pseudoymous blockchain researcher “arndxt” on X suggests that many of these traders might not ever have been profitable. According to arndxt, only 70 traders, or 0.0028%, made over $1 million on Pump.fun.
“But here’s the kicker: only 20% made ANY profits at all. The other 80%? They’re busy watching their money evaporate faster than their dreams of early retirement,” said arndx.
“Congrats, you’ve got better odds of getting struck by lightning while being eaten by a shark.”
DeFiLlama creator “0xngmi” estimated that around $518 million was extracted from memecoins on Solana, with $89 million of that amount coming from Pump.fun alone.
The decline in memecoin trading activity seems to have impacted inflows into Solana-based crypto funds, which recorded $39 million worth of outflows last week – the highest on record till date, according to CoinShares.
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