Memecoins crash – Analyzing impact of token launches falling to pre-mania levels

Has the SEC ruling deflated memecoin speculation?

Token launches on PumpFun have collapsed to their September 2024 levels SEC ruling deflates memecoin speculation, shifting market focus towards utility-driven blockchain projects

The speculative frenzy surrounding memecoins may be fading now.

Token launches on PumpFun have collapsed to their lowest levels since September 2024, signaling a shift in market dynamics. The latest blow came not from a liquidity crunch or a crackdown, but seemingly from the U.S. SEC – When they formally stated that memecoins are not securities. Rather than igniting further speculative mania, the ruling appears to have drained momentum from the sector, stripping away the risk premium that once fueled wild price swings.

With fewer traders chasing quick gains, attention is now turning towards blockchain projects with real utility. However, does this mark the end of the “pump and dump” era, or is it merely a temporary lull before the next wave of speculative excess?

PumpFun token launches collapse to pre-mania levels

Daily token launches on PumpFun peaked around late December 2024, surpassing 50,000 tokens at its peak. However, activity has since plummeted, with launch levels now matching those of September 2024 – Before the most recent wave of speculative mania took hold.

Source: Dune Analytics

This drop hinted at waning interest in pump-driven tokens (memecoins). The SEC’s ruling has removed regulatory uncertainty, deflating speculative enthusiasm.

Additionally, the high volume of past launches may have caused saturation, with traders growing cautious about depleting liquidity. Lower launch rates indicate a shift towards a more selective market.

Has the memecoin gamble lost its edge?

The SEC’s ruling that memecoins are not securities was initially seen as a win for the sector, removing the risk of enforcement actions. However, this newfound clarity has inadvertently stripped memecoins of a key driver of their speculative appeal – Uncertainty.

Previously, traders thrived on the regulatory gray area, betting on price volatility fueled by the fear (or hope) of crackdowns. Now, with no existential legal threats, memecoins lack the urgency and high-risk allure that made them attractive short-term plays.

Speculative mania around memecoins was fueled by narratives of regulatory arbitrage, positioning them as the “wild west” of crypto. The SEC’s decision neutralizes this appeal, classifying memecoins as collectibles, similar to NFTs, rather than high-stakes gambles. Combined with declining liquidity and fewer new launches, this shift may mean the memecoin cycle will cool down unless a new speculative trigger sparks renewed interest.

From speculation to stability

Here’s the question of the hour – Is the market maturing, or is this just a temporary reset before the next wave of risk-taking?

For retail traders who thrived on rapid memecoin cycles, the shift presents challenges. Investment trends are shifting towards real-world asset (RWA) tokenization, projected to surpass $50 billion this year. Institutional interest is rising, with the U.K’s NEST pension fund committing £5 billion to private markets and State Street launching a private credit ETF.

These moves signal a maturing market focused on utility over speculation. As memecoins lose momentum, blockchain adoption in finance and infrastructure accelerates. Capital is now flowing into sectors with tangible use cases, rather than those with short-term hype.

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