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Pump.Fun Crisis? Fewer Than 1% of Memecoins Survive
The crypto market has recently witnessed a significant downfall in the number of memecoins surviving in the market. The statistics indicate that only a small percentage, less than 1%, of these tokens have managed to continue their existence.
According to recent data, it was previously observed that the number of memecoins had skyrocketed to over 323,000. This surge led to a drastic increase in the overall market capitalization. However, this trend took a sharp turn when new token creation slowed down drastically. The weekly average number of successful memecoins has plummeted to a mere 1,500.
Despite the initial hype surrounding these tokens, investor sentiment has shifted significantly. Many have labeled them as “degenerate lottery tickets” or quick money-making schemes. Not even high-profile figures like Donald Trump have been immune to this trend, with their respective memecoins losing over 80% of their value since their peak.
As investors became more cautious and risk-averse, the market’s response to positive macroeconomic indicators has been starkly different from what was seen during the initial surge in memecoin creation. A drop in liquidity following a decline in U.S. dollar strength should theoretically have benefited these tokens. However, data reveals that they continue to show no signs of recovery or renewed interest.
As it stands, this downward trend is having far-reaching implications for other cryptocurrencies and their respective investors. The total market capitalization has taken a hit, with a staggering $1 trillion decrease in value.
Bitcoin’s price may be impacted by these developments, possibly falling as low as $73,000, which many experts consider to be a crucial support level.
In conclusion, it can be inferred that memecoins will continue to exist but only those with genuine utility, strong communities, and long-term vision will survive this downturn.
Source: https://crypto-economy.com/pump-fun-crisis-fewer-than-1-of-memecoins-survive/
