Despite the market’s recent frenzy, the top memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Dogwifhat (WIF) are facing tough times. These major players have struggled to maintain their value, with many falling far from their yearly highs. On average, the top 10 memecoins are down 63%, as revealed by data from Lookonchain on September 2.
🔮 Increased Competition from Safe-Launch Tokens
One of the key reasons for this decline is the surge in new memecoins, thanks to safe-launch services like Pump.fun and BaseJump. These platforms have made it easier to create new tokens, increasing competition and drawing attention away from established coins. According to Ilias Salvatore, growth lead at Flooz, the fast-moving nature of this new market is attracting traders seeking quick profits. As a result, the capital is shifting from established coins to newly launched tokens.
🔮 Short-Lived Success in New Token Launches
Despite the influx of new memecoins, success in this space is rare. Many of these tokens have a short lifespan, with only 1% lasting more than a few days. Pump.fun alone has launched over 1.98 million tokens since March, yet only a small percentage have gained traction, leading traders to view the current memecoin market as a "slaughterhouse."
🔮 Concerns About Liquidity and Long-Term Value
Some industry figures are concerned that the rise of memecoins is draining liquidity from other parts of the crypto market. With the focus on quick gains from new token launches, long-term projects that create real value are being overlooked. While memecoins remain popular, their impact on the broader market has raised questions about sustainability and the future of the current bull run.
#Token2049 #OMC #NeiroOnBinance #BinanceLaunchpoolHMSTR #BinanceLaunchpoolCATI