Solana Meme Coins Getting Destroyed as Market Sees Outflow

Tue, 2/04/2024 – 12:41

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Solana-based meme coins are experiencing a tough time, with many seeing significant outflows and a negative price trend over the last 24 hours. Looking at the bigger picture, it seems that players on the meme coin market are shifting their focus to other blockchain platforms like Base to find more opportunities or simply because they believe that Solana’s Meme coin potential is gone.

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Major outflows are being seen across the board on Solana. It is no surprise that these assets are gradually losing value. Meme coins are very speculative, almost like gambling, and the risks are high. Often, the creators of these coins may pull the rug out by removing all the liquidity, causing losses of up to 100%, especially if the liquidity is not locked. Other scamming tactics include freezing wallets, which can trap investors’ funds.

SOLUSDT
Solana/USDT Chart by TradingView

The data on large Solana meme coins sorted by Fully Diluted Valuation shows a persistent trend: most are in the red, with substantial drops in the last day. This trend is not isolated to Solana, as other popular meme coins are also bleeding heavily. Investors are likely moving to different chains, seeking risk and meme coin exposure elsewhere.

Separately, looking at Solana (SOL) itself, its performance has also been bearish. SOL has been seeing a downward trend recently despite the successful breakthrough of the symmetrical triangle. Unfortunately, the price went down after a few days of trading above the formation.

Essentially, memes on Solana are slowly losing steam. Investors in this space should proceed with caution, as the volatility and risk of loss are high. The current outflows suggest a bearish outlook for Solana meme coins. However, as has been proven in the past, investors have a short memory, and the meme coin trend might come back. It might happen on a different chain, but Solana stands out as one of the best contenders for such a shift.

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