Analyst Observes A Decline In The Creation of Memecoins: The Reason Behind?

• Memecoin launches fell from 24,008 last month to just 11,532 this month, signaling change.
• The drop in memecoin launches and graduations may signal the beginning of an altseason.
• Investors are moving toward utility tokens, focusing on fundamentals over speculative assets.

The Solana-based memecoin creation on Pump.fun has significantly decreased based on recent platform data which indicates market dynamics are evolving. New token releases have decreased dramatically based on the latest statistics and fewer initial tokens achieve “graduation” which indicates market success. The slowdown of memecoins’ production demonstrates that investors now direct attention toward alternative established coins which might signal the start of an “altseason.”

PumpDotFun data indicate that memecoins lost popularity because the launch frequency and graduation success rates decreased noticeably. The February 26th token launch resulted in 25,385 tokens, yet only 0.75% graduated. The statistics from January 30th indicated stronger performance as 64,574 tokens were launched and 1.74% graduated. A decrease in coin tokens may result from several elements, such as market stress, regulatory oversight, or investor exhaustion, which pushes people to focus on utility-based coins.

Source: X

Fewer token launches in cryptocurrency markets match the reduction of tokens that advance into established market positions. Investors are shifting their attention to established crypto coins with well-defined practical applications because the number of new tokens reaching market maturity progressively declines. Launched token numbers dropped from 24,008 tokens last month to 11,532 tokens this month, indicating this transition. Additionally, new token releases fell significantly from 2,184 to 717 in the past week.

The reduction in memecoin developments reflects investors interest in altcoins with solid fundamental characteristics. Investors seem to shift their attention toward utility-driven tokens operating in decentralized finance (DeFi), non-fungible tokens (NFTs), and layer-1 blockchains as speculative token creation slows down

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Market trends show investors lose interest in speculative new tokens, which explains the decrease in the number of token releases and the number of token graduations. Moreover, the support from BNB Chain platforms and exchange services such as PancakeSwap for meme ecosystems increases the unpredictable value fluctuations of meme coins. The price fall together with wider market fluctuations confirms the unpredictable price swings meme coins exhibit when social media influencers endorse them. The evolution of the meme coin market requires traders to prioritize understanding and openness because speculative operations in this space become more challenging to manage.

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