Pump.Fun’s Memecoin Frenzy hits a wall, with the platform’s “graduation rate” sinking at under 1% for four consecutive weeks.
“Graduation Rate” is the term Memecoin Launchpad, a token that passes through the incubation phase and becomes fully tradeable through Solana Distributed Exchange (DEX). To graduate, the token must meet certain liquidity and trading requirements.
Data from Dune Analytics shows that Pump.Fun’s graduation rate remains below 1% for the first time from February 17th to February 17th.
Success rate of Pump.Fun tanking tokens. sauce: Dune analysis
Pump.Fun’s graduation rate has been particularly high so far. The platform’s best performance week was November 2024. 1.67% of Memecoin has moved to the open market.
However, the enormous amount of tokens released on the platform at the time made this proportion more important than it is now. For the week that begins on November 11th, 323,000 tokens were created in pupp.fun. That is, a graduation rate of 1.67%, translated into about 5,400 tokens that enter Solana’s debt economy in a week, was translated.
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According to Dune, weekly token graduations have plummeted to an average of around 1,500 tokens at the time of writing, as both Pump.Fun and Solana have seen a decline in token production volume.
Memokine is dying and they are not responding to positive market signals
The decline in Pump.Fun’s graduation rate reflects a decline in investor desire for memokine. This is to win a degenerate lottery or quick cash hand for creators.
Several politicians, including US President Donald Trump, have also launched their own Memecoin. According to Coingecko, his tokens fell 84% from the highest ever set on January 19th.
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According to Matrixport, Memecoins’ struggles last despite improving fluidity. In February, analysts at Matrixport said the US dollar’s strengthening pressured Bitcoin prices by tightening religious liquidity.
Since then, the US dollar has weakened. Over the past month, the dollar was measured against a large basket of currencies after peaking at 107.61 on March 28th and then fell to 103.95 on March 14th.
DXY performance over the past month shows a weakening of the US dollar. sauce: TradingView
“The US dollar has recently weakened, leading to rebounding liquidity indicators and slight improvements in inflation data. Despite these positive changes, Memocoin, which previously was one of the strongest stories in this bull market, continues to struggle significantly without an obvious recovery,” Matrixport said in the report.
Bitcoin caught in memocoin aftershock
According to Matrixport, the struggling Memecoin market is contributing to a $1 trillion wipeout of Crypto market capitalization.
“This wealth redistribution could be reluctant to investors in deploying further capital, causing rebounds — even those caused by more than expected inflation data,” the report said.
Matrixport analysts warn that this could lead to a further decline in Bitcoin, and believes that a potential retrace will provide “strong support” to a drop of $73,000.
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