Solana’s Memecoin Boom Fizzles as Token Launches Plummet

The frenzy around Solana-based memecoin launches appears to be losing steam, with daily launches nearly halving in the past month. According to Solscan data , the number of new tokens created on Solana fell to 49,779 on February 19, a stark drop from the all-time high of 95,578 recorded on January 26. This marks the lowest daily count since New Year’s Day 2025.

The sharp downturn follows a January resurgence in memecoins, which saw figures like former U.S. President Donald Trump capitalize on the trend by launching politically themed tokens . However, that cycle appears to have peaked. One of the key catalysts for the downturn was Argentine President Javier Milei’s involvement in a token called LIBRA, which quickly unraveled into a $251 million scandal.

Data from Nansen suggests that 86% of LIBRA traders lost at least $1,000 , adding fuel to concerns about unscrupulous practices in the memecoin space.

Pump.fun Sees Sharp Drop in Activity

One of the biggest players in Solana’s token boom, Pump.fun, is feeling the pressure . The token launchpad, which accounted for 60% of Solana’s new token launches, saw activity plunge to 35,152 new tokens on February 19—its lowest figure since Christmas 2024.

The slowdown has had an immediate financial impact. Revenue on Pump.fun sank to $1.69 million, the weakest level since early November, according to Dune Analytics. Solana itself rode the memecoin wave to record highs in transaction volume, active addresses, and fees, but bot-driven activity and inorganic growth have cast doubts on the sustainability of its dominance.

Memecoin Fallout Prompts Regulatory Scrutiny

The memecoin mania that swept across the industry has drawn criticism from key industry figures, with some warning that it could siphon capital away from legitimate altcoin projects. A Cointelegraph report indicated that 24% of the top 200 crypto tokens are now trading at one-year lows, raising concerns that the speculative hype around memecoins is limiting broader market growth.

Ethereum co-founder Vitalik Buterin recently criticized the blockchain community for tolerating casino-like speculative tokens, defending Ethereum’s stricter stance on high-risk projects. Meanwhile, Coinbase CEO Brian Armstrong warned that insider trading has become rampant in the memecoin space, with some projects crossing ethical boundaries.

Regulators are taking notice. On February 20, the U.S. Securities and Exchange Commission (SEC) announced the launch of a Cyber and Emerging Technologies Unit dedicated to cracking down on crypto misconduct. The unit will focus on fraud and scams targeting retail investors.