The memecoin market slump is having a big impact on the Solana price. Following a broader decline in the crypto market, memecoins have tanked even more. This has been reflected in a decrease in activity on the popular Solana meme coin launchpad, Pump.fun.
On Monday, March 10th, Solana was trading at $121.45, down 8.61% daily, after a slump in memecoin trading. Just one day earlier, Pump.fun’s daily revenue was down to $667k, the lowest level in seven months.
Moreover, many popular Solana tokens launched through Pump.fun saw double-digit losses. For instance, the JD Vance-themed token Pwease was down 36%, Gigachad was down 12.1%, and Fartcoin lost 15.2%. More popular tokens like the official Trump token dropped 3.3%, while Melania dropped 3.5%.
Why Solana Memecoins Are in Decline
The decline in daily revenue for Pump.fun has been noticeable since January, when crypto markets were at their peak levels. Since then, favorable regulatory and political news have failed to reignite the bull market.
Most recently, crypto markets have fallen after Donald Trump’s White House crypto summit, leaving many traders disappointed. Notably, Trump did not reveal any plans to add to the government’s existing crypto holdings. Consequently, the crypto markets fell significantly following the event, with memecoins being particularly affected.
The downward pressure on memecoins also continues an earlier trend, which came after several high-profile scandals. For instance, the Libra token, launched on Pump.fun, was revealed as a rug pull after reaching a valuation of $4.5 billion. Moreover, in February, hackers infiltrated the official Pump.fun X account, resulting in scammers promoting a fake PUMP token.
Earlier in March, Pump.fun’s trading volume had dropped 94% from its January peak of $3 billion. This drop in volume coincided with a significant decline in the rate at which tokens graduated on the platform.
In particular, the number of tokens that reached a valuation of $100,000 fell from 1.85% to 0.83%. This threshold is necessary for these tokens to be accepted by the Raydium exchange.
The reduction in trading volume suggests that small-cap memecoins may have fallen out of favor. The ease of launching tokens on platforms like Pump.fun has attracted numerous low-effort projects and scammers.
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