Of the 1.58 million tokens launched on Solana, only a small fraction reach the decentralized exchange (DEX) Raydium. This reveals much about the memecoin market’s sustainability.
Low Success Rate for Memecoins
Barely 1.4% Make It to Raydium
A no-code platform on Solana allows users to create memecoins easily. However, only 1.4% of these tokens make it to Raydium for open trading. According to a Dune Analytics dashboard by evelyn233, this equates to just 22,330 tokens out of 1.58 million.
Minimum Market Cap Requirement
Raydium requires a minimum market capitalization of $69,000 for a token to be traded on its platform. This high bar contributes to the low success rate of memecoins.
The Unsustainable Market for Memecoins
Short-Lived Success
Even among those that reach Raydium, many tokens experience a brief surge before quickly losing value. Dexscreener data shows that about 65% of these tokens have market capitalizations below $10,000.
Market Realities
These dismal numbers highlight the challenges and risks in the memecoin market. While some traders see potential gains, many face significant losses.
Pump.fun’s Lucrative Business
Fees Generate Millions
Pump.fun, the no-code platform for creating memecoins, is profiting significantly. A Dune dashboard reveals that $81 million in SOL has been paid in fees to the website. Interestingly, $79 million of this total comes from tokens that never make it to market.
Conclusion
Memecoin Market Insights
The low success rate of memecoins on Solana’s Raydium DEX underscores the market’s volatility. While platforms like Pump.fun profit, many traders experience losses.
