The Solana memecoin market is crashing. Many of these coins have crashed by double digits, and the total market value is now $10 billion. Just last month, in January, it was over $25 billion. The hype around these risky coins is fading, and many investors are losing money. However, the Solana network, token launch platforms, and early investors are still profiting.
TRUMP, PENGU, and MELANIA Lead the Collapse
Some of the biggest memecoins on the Solana network have seen the biggest crashes. Official Trump (TRUMP) dropped from $103 to $16, losing $10.7 billion in value. Pudgy Penguins (PENGU) fell from $3.2 billion to $554 million, and Melania (MELANIA) dropped from $1.9 billion to $143 million.
A few altcoins, like Would Token (+24%), Comedian, Unicorn Fart Dust, and Just a Chill Guy, increased in value. Solana’s token, SOL, has fallen over 40% this year, partly due to the memecoin sell-off and the “Libra” situation.
Despite this, Solana remains a fast and low-cost blockchain, processing over 65,000 transactions per second (TPS) with lower fees than Ethereum.
Who’s Profiting from the Collapse?
While most investors are losing money, some groups are still making profits. Solana network has earned $748 million in fees from memecoin trading over the past six months, including $328 million this year. This is more than Ethereum (ETH) made in the same period.
Pump.fun, the main platform for launching memecoins on the Solana network, has also profited. It made $68 million in fees this month and $121 million in January. Decentralized exchanges (DEXs) like Raydium, Meteora, Jupiter, and Orca have handled over $1 trillion in trades.
Early buyers, known as “snipers,” initially made millions before selling. One trader made $82 million from Melania (MELANIA), and another made $29 million from TRUMP. Their sell-offs caused prices to crash, leaving regular investors with losses.
The Rise and Fall of Solana’s MemeCoin Boom
Solana blockchain has simple tools like the Solana Program Library and Pump.fun that let anyone create a memecoin in minutes. This made it easy for many new coins to launch, and some, like Bonk (BONK) and Dogwifhat (WIF), became very popular last year.
Many of these memecoins also use Non-Fungible Tokens (NFTs) to grab attention and unite people. Trading bots like BonkBot and Maestro allow users to buy and sell these coins instantly on Telegram. This helped memecoins grow fast and made it easy for early buyers to sell their tokens and take profits.
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