The report from Galaxy Research finds that memecoins are very effective at drawing new participants into blockchain ecosystems. Cointelegraph
However, despite the hype, most traders lose money. The short-term “gambling” dynamics of memecoin trading favor platforms and tools that enable quick trades or token launches.
Key Findings & Data
| Metric/Finding | Details |
|---|---|
| Launchpad Success: Pump.fun | Operating on Solana, Pump.fun is highlighted as a big winner. Tokens launched on it represent ~US$4.8 billion in fully diluted market value. |
| Token Launch Growth | Of ~32 million tokens on Solana, ~13 million have been launched via Pump.fun. That’s nearly a 300% increase over under two years. |
| Holding Times Plummet | Median holding time for Solana memecoins dropped from ~300 seconds to ~100 seconds year-on-year, showing high dominance of bots, scalpers, and hyper-short-term trading. |
| High Platform Revenues | One platform, Axiom, has earned over US$200 million in fees with a relatively small team (<10 employees) thanks to memecoin activity. Tools like BONKbot and Trojan also profit by automating token launches or sniping new tokens. |
| Pump.fun Token Launch | Pump.fun raised US$500 million by launching its own token (PUMP) in very short time—showing how memecoin launch platforms monetize both trading and token issuance. |
Implications & Insights
- Platforms & Infrastructure are the Big Winners. Launchpads, exchanges, bots, and smart tools capture much more value (fees, token launches, etc.) than individual traders. The investors often bear losses.
- High Risk for Traders. Short holding times and racing bots make memecoin trading very volatile. Many retail users are likely to lose money unless they are very lucky or well-informed.
- Growth via Hype, but Sustainability Questionable. Memecoins typically lack intrinsic utility; their value is tied to social media buzz, cultural memes, and speculative behavior, which can be short-lived.
- Market Structure: Scalable Profits for Platforms. With infrastructure already in place, platforms can scale memecoin launch and trading operations, often with limited staff, and earn large revenues.
- Behavioural & Ethical Concerns. The fact that many users are drawn in by “fear of missing out” (FOMO), bots, or hype raises questions about protection, disclosure, and regulation in the memecoin space.
What to Watch Going Forward
- Will regulators start applying stricter rules to memecoin launches, especially regarding transparency, disclosures, or safe-guards for retail traders?
- Will platforms face reputational risk if many users suffer losses, possibly resulting in class actions or regulatory scrutiny?
- Can memecoins evolve beyond pure speculation and build genuine utility so that long-term holders benefit, not just short-term flippers and platforms?
- Will bots and automated sniping tools be curbed or made more transparent?
Conclusion
While memecoins continue to be a powerful magnet for new users in the crypto world, the return on investment is strongly tilted toward platforms, infrastructures, and those who build tools around the hype. For many traders, the promise of easy gains is countered by short holding times, high risk, and the reality that much of the value is extracted by others.
