Solana memecoins' worst slump…share on decentralized exchanges falls below 10%

Memecoin trading in the Solana (SOL) ecosystem has fallen to its lowest level in two years.

On the 29th (Korean time), BeInCrypto, citing Blockworks data, reported that the share of memecoins on Solana-based decentralized exchanges (DEX) recently fell below 10%. As of the 27th, memecoin trading volume on Solana DEX was about 295 million dollars, accounting for 9.2% of the total 3.2 billion dollars. This is a drop of about 60 percentage points compared to December last year (70%).

Analysts say the contraction in trading is due to a series of major rug pulls and fraud incidents this year. For example, the LIBRA token, which drew attention over issues related to Argentina's President Javier Milei, saw more than 107 million dollars in liquidity disappear during its collapse, and losses of about 4 billion dollars were recorded across the ecosystem. As such incidents continued to occur, investors in the Solana ecosystem sharply reduced their preference for high-risk assets.

The deterioration in memecoin investor sentiment also led to a reduction in new token launches. Since mid-January this year, the number of new token issuances on the Solana network has decreased by 42%.

By contrast, stablecoin (virtual assets pegged to fiat currency) trading has surged, recently accounting for 80% of Solana DEX trading volume.