The memecoin boom on Pump.fun is significantly slowing down. The platform has once again reported low graduation rates for tokens becoming tradable on Solana decentralized exchanges.
Decrease in Successful Token Rates
The term 'graduation rate' refers to the percentage of tokens that make it through Pump.fun's incubation phase and become fully tradable. Over the past month, the average number of graduating tokens has dropped to just 1,500. The platform has never had a high success rate, but its best week in November 2024 saw a 1.67% graduation rate, sending 5,400 new tokens into Solana's DeFi market out of 323,000 created. Token creation volume has now decreased.
Slowing New Token Launches
New token launches on Pump.fun have also slowed. In January, nearly 1,200 tokens were launching daily, but this number has fallen below 300 a day by early March. Trading volumes for its graduated tokens plummeted 94% from January highs of $3 billion to about $170 million.
The Market Amidst Memecoin Fatigue
February remains the fourth-highest month for trading volume on Pump.fun since its launch. Co-founder Alon Cohen attributed the slowdown to broader market conditions. Speculative surges linked to influential figures often falter as risks become apparent. Events like 'Libragate,' where a token endorsed by prominent figures ended as a significant fraud, highlight market issues.
The downturn highlights a waning interest in memecoins, often seen as short-term speculation. Even political figures like Donald Trump have been affected by the cooled enthusiasm. Regulatory bodies are beginning to pay attention to memecoins, warning about the dangers of fraud and market manipulation.
