Memecoin Market Bloodbath Continues as 97% of Projects Die, Underscoring Precarious Nature of These Investments

The report, which analyzed 30,000 memecoin projects across Solana, Ethereum, and Base determined that the average lifespan of a memecoin is just one year

A new report has found that a staggering 97% of memecoins eventually fail, highlighting the precarious nature of these investments.

The report, which was conducted by analyzing 30,000 memecoin projects across Solana, Ethereum, and Base, found that the average lifespan of a memecoin is just one year, which is less than a third of the average lifespan of a crypto project.

The rate of meme coin demise outpaces the creation of new projects, with an average of 2,020 meme coin projects dying each month.

“This rapid turnover underscores the speculative and often short-lived nature of memecoins, making them a risky investment choice,” the report noted.

Despite their volatility, memecoins continue to be a popular investment choice, with nearly 60% of memecoin investors viewing these assets as short-term investments, a factor that aligns with the high turnover rate.

Different blockchain platforms exhibit varying death rates for memecoins:

These figures reveal that memecoin instability is prevalent across various platforms, although some chains are more prone to high failure rates than others.

The memecoin market is also significantly impacted by malicious activities, according to the report.

The perception of memecoins varies significantly among different investor groups.

“This indicates that as investors gain experience and perhaps suffer losses, they tend to adopt a more cautious approach toward memecoins,” the report noted.

“Meanwhile, the media’s stance on memecoins is predominantly cautious. Only 13.77% of news reports about memecoins are bullish, reflecting widespread skepticism.”

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