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The memecoin frenzy connected Pump.fun is hitting a wall, with the platform’s “graduation rate” sinking beneath 1% for the 4th consecutive week.
“Graduation rate” is the memecoin launchpad’s word for tokens that marque it done the incubation signifier and go afloat tradable connected a Solana decentralized speech (DEX). To graduate, a token indispensable conscionable circumstantial liquidity and trading requirements.
Over the past 4 weeks, starting from Feb. 17, Pump.fun’s graduation complaint has remained beneath 1% for the archetypal time, Dune Analytics information shows.
Pump.fun’s tanking token occurrence rate. Source: Dune Analytics
Pump.fun’s graduation complaint has never been peculiarly high. The platform’s best-performing week was successful November erstwhile 1.67% of memecoins moved connected to the unfastened market. However, the sheer measurement of tokens launched connected the level astatine the clip made this percent much important than it is now. During the week starting Nov. 11, 323,000 tokens were created connected Pump.fun, meaning the 1.67% graduation complaint translated to astir 5,400 tokens entering Solana’s DeFi system successful a azygous week.
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With token instauration measurement declining connected some Pump.fun and Solana, play token graduations person plummeted to a four-week mean of astir 1,500 tokens astatine the clip of writing, according to Dune.
Memecoins are dying, and they’re not responding to affirmative marketplace signals
Pump.fun’s dropping graduation complaint reflects waning capitalist appetite for memecoins, which person developed a reputation arsenic degenerate lottery tickets oregon speedy currency grabs for their creators.
Several governmental figures person launched their ain memecoins arsenic well, including US President Donald Trump. His token is down 84% from its all-time precocious acceptable connected Jan. 19, according to CoinGecko.
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Memecoins’ struggles persist contempt improving liquidity, according to Matrixport. In February, Matrixport analysts noted that a strengthening US dollar had pressured Bitcoin prices by tightening dollar-denominated liquidity.
Since then, the US dollar has weakened. Over the past month, the US Dollar Index (DXY), which measures the dollar against a handbasket of large currencies, peaked astatine 107.61 connected Feb. 28 earlier dropping to 103.95 connected March 14.
DXY show successful the past period shows the US dollar weakening. Source: TradingView
“The US dollar has precocious weakened, starring to a rebound successful liquidity indicators and immoderate marginal improvements successful ostentation data. Despite these affirmative shifts, memecoins — antecedently 1 of the strongest narratives during this bull marketplace — proceed to conflict significantly, with nary evident recovery,” Matrixport said successful its report.
Bitcoin caught successful memecoin aftershocks
The struggling memecoin marketplace has contributed to a $1 trillion wipeout successful crypto marketplace capitalization, according to Matrixport.
“This redistribution of wealthiness whitethorn pb investors to stay cautious astir deploying further capital, causing rebounds — adjacent those triggered by better-than-expected ostentation information — to beryllium limited,” the study noted.
Matrixport analysts pass that this could pb to further Bitcoin declines, with a imaginable retracement to arsenic debased arsenic $73,000 — a level they judge volition supply “strong support.”
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