Celebrity meme tokens on the Solana blockchain have suffered a drastic downturn, losing over 90% of their peak value in just one month. These tokens, linked to high-profile figures, highlight extreme market volatility and raise concerns about their long-term viability.
Notable Price Drops
According to data from Jupiter Slorg, 30 meme coins associated with celebrities like Andrew Tate and Soulja Boy were launched on Solana last month. The excitement surrounding these tokens quickly faded, resulting in an average decline of 94% from their all-time highs. Even the best-performing tokens have dropped by more than 70%, with half plummeting by over 99%.
Market Capitalization Impact
The market capitalization of these tokens has been severely impacted. Of the 30 tokens, 22 are now valued at less than $1 million. For example, the token linked to rapper Waka Flocka has lost 99.7% of its peak value and currently has a market cap of just $400,000, despite ongoing promotion on social media.
Broader Market Implications
The rapid decline of these tokens raises questions about the sustainability of celebrity-backed meme coins and the broader implications for celebrity involvement in cryptocurrency markets. Interestingly, only 40% of the celebrities involved have mentioned these tokens on social media in the past week.
Resilience of the Solana Ecosystem
Despite the decline in meme tokens, the broader Solana ecosystem remains resilient. As of today, Solana (SOL) is priced at $168.96 with a 24-hour trading volume of $5 billion. This reflects a 5.12% price decline in the last 24 hours but a 6.20% increase over the past week. SOL has a circulating supply of 460 million and a market cap of $78.5 billion.
