Meme Coin Success Rate on Pum.fun is Very Low, Only 1.41%!

Bittime - Meme coins have become a new trend in the crypto world. Although some people see it as a risky investment, meme coins have caught the attention of many investors and celebrities, even influencing the dynamics of the entire crypto market. 

However, although many meme coins are launched, only a small percentage actually manage to achieve some level of success. One platform that allows the creation and launch of meme coins is pump.fun on the Solana network.

Low Success Rate of Meme Coin on Pump.fun

According to data from Dune Analytics, only 1.41% of crypto tokens created using pump.fun were successfully launched on Solana-based DeFi protocol Raydium. 

This figure has barely changed since May, with fluctuations between 1.21% and 1.41%. This shows that most of the meme coins created through these platforms were unable to reach market expectations or gain enough support to survive.

Meme Coin Hype Starting to End?

Adam Cochran, partner at Cinneamhain Ventures, noted that no new meme coin has managed to reach a Fully Diluted Valuation (FDV) value of $20 million. Cochran said that this could be a sign that the meme coin hype cycle may be starting to end. 

As a side note, meme coins launched by pump.fun rarely reach DEX with significant value, which further indicates the difficulty of meme coin to success.

Celebrity Participation in Meme Coin

Despite the low success rate, pump.fun still attracts attention, including from outsiders and celebrities. Since May, several celebrities such as Caitlyn Jenner, Iggy Azalea, and Jason Derulo have used pump.fun to launch and promote their crypto tokens. 

While this gives meme coins added validity in the eyes of the public, the reality is that few are actually successful.

Data from CoinMarketCap shows that the total market capitalization of meme coins currently stands at $44.94 billion, a decrease of 2.67% in the last 24 hours. 

However, meme coin trading volume actually increased by 27.29% in the same period, reaching $4.48 billion. This shows that although the price of meme coins may experience fluctuations, trading interest and activity remains high.

Reasons for the Low Success Rate of Meme Coin

There are several reasons why the success rate of meme coins on pump.fun is so low. First, the highly speculative nature of meme coins makes them susceptible to sharp market fluctuations. Most investors may be attracted by short-term hype, but quickly abandon a project if they do not see the potential for quick profits.

Second, the meme coin market has become very saturated. With thousands of new tokens launched every month, it is difficult for new projects to differentiate themselves and get enough attention. Even with celebrity backing, without a clear business model and strong community, many meme coin projects fail to survive.

Pump.fun: Easily Create Meme Coins 

Some crypto observers believe that this low success rate is not a reflection of the meme coin market as a whole, but rather shows how easy it is for pump.fun to create meme coins. 

One crypto observer said that pump.fun did not destroy the meme coin market, but instead opened up the facts about the actual process of creating meme coins and made it very easily accessible to anyone.

Additionally, even though only a few tokens are successfully launched, the revenue generated from them is quite significant. Pump.fun charges a transaction fee of 1% until the token reaches a certain market capitalization. 

In some cases, pump.fun's revenue even surpassed Ethereum in the same period. On July 29, pump.fun generated about $864,000 in 24 hours, about 57% more than Ethereum generated.

The Meme Coin Market is Very Competitive

Meme coins may seem like a passing fad, but they have shown resilience and the ability to create waves in the crypto market. However, the challenges faced by new projects launched through platforms like pump.fun show that this market is highly competitive and it is not easy to break into it.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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