Solana Meme Coin Trading Volume Plummets, Triggering Negative Opinions

Bittime - The debate regarding meme coins has intensified, especially after the trading volume of Solana-based memecoins experienced a significant decline. Skeptics have raised concerns about the sustainability and value of these assets, considering them a threat to the crypto ecosystem.

Extractive Properties of Meme Coin Solana

Messari's Mike Kremer called memecoins "the most extractive crypto phenomenon" since the 2017 ICO boom. He highlighted that the current memecoin trend lacks the underlying value seen in previous crypto trends. 

For example, DeFi Summer resulted in platforms like Uniswap providing real utility. Kremer argues that memecoins often create a damaging dynamic in which their creators hype worthless tokens only to sell them when their price rises, leaving retail investors with almost worthless assets.

Decreased Trading Volume and Increased Surveillance

Criticism of memecoins is reinforced by the latest data showing that around 60% of traders on Solana's memecoin deployer platform, pump.fun, experienced losses. Since launch, the platform has seen the launch of 1.7 million tokens, with less than 1.5% reaching a total value of more than $63,000. 

This condition raises questions about the sustainability of the memecoin market, especially after Solana-based memecoin trading volume fell 80% in the last two weeks.

Also Read: Pump.fun Loses Money, Makes Only 3,061% Profit

Controversial Perspective: Are Memecoins Worthwhile?

Although criticism abounds, some argue that memecoins can play a positive role in the crypto ecosystem. Alon, developer of the pump.fun platform, argues that memecoin's lower deployment costs have democratized access to the crypto market. 

He believes that the platform makes it easier for newcomers to get involved in crypto while reducing the prevalence of fraud that has ravaged the memecoin sector.

Proponents further state that although memecoins may seem trivial, they play an important role in building communities and social signals in the crypto space. 

Emin Gün Sirer, founder of Avalanche, previously noted that although memecoins are inherently worthless, they can spark excitement and engagement, ultimately drawing attention to technological advancements in the industry.

Conclusion: The Future of Meme Coin Solana

As the debate continues, the future of memecoin remains uncertain. While some see it as a damaging trend that takes value away from more legitimate projects, others argue for its potential to attract newcomers and create vibrant communities. 

The current state of the memecoin market, characterized by increasing skepticism and decreasing trading volume, suggests that market players should be cautious. 

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Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.