Crypto: Solana Memecoins Trap Nearly 94% of Traders

Memecoins continue to attract traders on Solana. Profits, much less so. Among the 304,161 active wallets over the past 90 days, only 19,003 show a positive result. That represents 6.25% of the traders followed. The median crypto trader loses 120 dollars. Even among the winners, large profits remain rare.

Memecoin Crypto Has Few Winners

The data covers 304,161 active crypto traders on Solana DEXs over the last three months. The network had recently benefited from a boost in activity around memecoins and Pump.fun. The results are less encouraging. Only 19,003 crypto wallets end the period in the green. The other 285,158 do not. Nearly 94% of traders thus lose money. The median loss reaches 120 dollars.

The numbers become even more telling when looking at the winners. Among profitable crypto wallets, 88% show a profit less than 100 dollars. A few tens or hundreds of dollars for the majority. The spectacular gains circulating on X therefore represent only a small part of the market.

On-chain data also estimates the group’s losses at 1.26 billion dollars based on observed valuations. The calculation of the rate of profitable traders relies on realized profits and losses. The difference is due to tokens whose liquidity sometimes disappears very quickly.

Only 25 Wallets Exceed 10,000 Dollars

Data related to the FOMO app gives another idea of the distribution. Only 25 followed wallets would have made more than 10,000 dollars in profits. Not 25%. 25 crypto wallets. FOMO notably allows newcomers to copy transactions of certain influencers. The principle facilitates the arrival of traders who know little about the tokens they buy.

The result obviously guarantees nothing. Memecoins have already gone through several difficult periods this year. In June, Dogecoin, Shiba Inu, and Pepe notably accompanied a sharp correction of the sector.

On Solana, the cycle moves even faster. New tokens continuously appear. Many no longer even try to build a community over several months. They live a few hours or days, attract crypto traders, then disappear from the radar. Platforms also facilitate launches. Sometimes it only takes a few minutes to create a token and start trading it. Finding someone to buy it for more remains another matter.

Pump.fun Still Makes Millions

Traders’ losses have not made the activity disappear. Pump.fun remains one of the main beneficiaries of the Solana memecoin market. On August 19, the platform generated about 4.4 million dollars in daily fees, its best level since January. It was then among the top three protocols generating the most fees.

The model thus continues to work for the platform. For crypto traders, the record differs. Pump.fun had already changed its remuneration system several times. In February, the platform had changed its rewards to favor memecoin traders more.

New users continue to arrive nonetheless. Robinhood also benefited from this activity. At times, memecoins represented up to 51% of the activity observed on its new launches. The trend then reversed, with several tokens dropping sharply. The same scenario plays out on new platforms backed by influencers. A token quickly rises. The first wallets profit. The following try to catch up with the movement. Over the last 90 days, only 6.25% succeeded.