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The memecoin market saw explosive growth in recent years, with some coins delivering massive gains in short periods. What started as a playful trend in the crypto world evolved into a billion-dollar industry. However, that golden era appears to be over. The market has crashed, prices have plummeted, and an increasing number of traders are turning their backs on memecoins in favor of more stable alternatives.
Memecoins Face Toughest Period in Years #
The Solana network has benefited greatly from the popular memecoin market in recent years. These are cryptocurrencies without inherent value or utility. Memecoins can be linked to well-known figures or internet sensations, often with a community built around them.
A year and a half ago, the memecoin market began growing rapidly. According to Blockworks data, the share of memecoins on Solana increased by over 600% within a month in March 2024.
A year ago, in November 2024, memecoins accounted for over 60% of the Solana network. The memecoin market has collapsed in recent months. On November 29, memecoins made up just 9% of the Solana network—the lowest level in two years.
The problem isn’t limited to Solana. Memecoins have become less popular everywhere. According to CoinGecko data, the combined market cap of all major memecoins is currently just under €38 billion. On January 1 of this year, it was nearly €150 billion.
Traders Massively Shift to Stablecoins #
In contrast to memecoins, stablecoins are performing very well on Solana, according to Blockworks data. These are cryptocurrencies with relatively stable value, as they are pegged to currencies like the euro or US dollar.
Last month, stablecoin volume on Solana rose by 38%. Compared to a year ago, this volume has increased by nearly 85%. Currently, stablecoins account for almost 80% of the Solana network.
The total circulating supply of stablecoins has also risen significantly during this period. In one year, the supply on Solana increased by a whopping 165%.
Trading Activity Remains Strong on Solana #
Although the balance on Solana seems to have shifted from memecoins to stablecoins, activity on the blockchain has remained virtually stable. A year ago, the number of transactions on Solana was 2.32 billion. Last month, it was 2.31 billion.
This all suggests that Solana users’ focus has shifted from risky investments to safety and stability. Memecoin traders may not have disappeared entirely, but they are making more conservative choices.