The once-thriving memecoin mania on Pump.fun is showing signs of exhaustion, with fewer than 1% of tokens managing to reach full trading status for the fourth consecutive week.
The platform uses the term “graduation rate” to describe tokens that successfully transition from the initial incubation phase to becoming fully tradable on a decentralized exchange (DEX) on Solana. To graduate, tokens must meet certain liquidity and trading benchmarks.
Since February 17, Pump.fun’s graduation rate has consistently remained under 1%, marking a significant shift, according to data from Dune Analytics.
Historically, Pump.fun has never had an exceptionally high success rate. Its peak week occurred in November 2024, when 1.67% of tokens successfully entered the market. However, at that time, the sheer number of tokens being launched made this percentage more impactful. In the week beginning November 11, around 323,000 tokens were introduced, meaning roughly 5,400 tokens advanced into Solana’s DeFi ecosystem in just seven days.
As the number of new token launches on both Pump.fun and Solana declines, the weekly number of graduated tokens has also taken a hit, dropping to an average of about 1,500 over the past four weeks, per Dune’s statistics.
Memecoins Struggle Amid Declining Market Interest
The falling graduation rate highlights diminishing enthusiasm among investors for memecoins, which are increasingly viewed as speculative bets or quick-profit schemes for creators.
Even public figures have joined the memecoin space, including U.S. President Donald Trump. However, his token has seen an 84% drop from its peak on January 19, according to CoinGecko data.
This downward trend persists despite improved market liquidity, as noted by analysts at Matrixport. In February, they attributed Bitcoin’s struggles to a stronger U.S. dollar, which tightened dollar-based liquidity.
Since then, the U.S. dollar has weakened. The U.S. Dollar Index (DXY) hit a high of 107.61 on February 28 before falling to 103.95 by March 14.
“The recent weakening of the U.S. dollar has led to better liquidity indicators and slight improvements in inflation data. However, memecoins, which were once among the hottest assets in this bull market, continue to face significant hurdles with no signs of recovery,” Matrixport stated in a report.
Bitcoin Feels the Impact of the Memecoin Slump
The turmoil in the memecoin market has contributed to a $1 trillion reduction in overall cryptocurrency market capitalization, according to Matrixport.
“This shift in capital allocation could result in investors remaining hesitant to inject further funds, which may limit any market rebounds—even those driven by favorable inflation data,” the report warned.
Matrixport analysts suggest that Bitcoin could continue to slide, potentially dropping to $73,000, a level they consider to be strong support for the asset.
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