According to Matrixport’s assessment, meme tokens continue to lag behind despite gains in worldwide solvency. Three Justifications Why the Cost of Shiba Inu Coin Might Ascend by 60%
Investors are more likely to put money into riskier holdings like digital currencies when central banks add more solvency to the marketplace or uphold accommodating financial regulations, which raises prices and trading activity. Matrixport also mentioned that U.S. inflation figures exceeded expectations, even though unclear trade regulations still cast a shadow over the possibility of the Federal Reserve loosening financial policy.
The meme token marketplace has not been impacted, according to Matrixport’s most recent study, despite the increase in solvency brought on by a weaker dollar and better inflation statistics. Since the significant digital currency marketplace collapse in the middle of February, meme tokens haven’t displayed any indications of bouncing back. According to recent research, solvency has decreased in Solana (SOL)-based automated marketplace makers (AMMs) such as Serum, with Raydium’s total locked value (TVL) falling by 71%. Matrixport analysts had previously cautioned traders in a report about an upcoming digital currency consolidation period that would particularly affect meme tokens. Meanwhile, Solana’s TVL has fallen by as much as 37%.
The increase in worldwide solvency, as measured by the money supply of 28 central banks around the world, typically encourages alternative investments. Matrixport’s research, however, suggests that the meme token marketplace has not yet experienced this effect. The total market capitalization of meme tokens reached a high of $137 billion last December, but it has since fallen by about $86 billion, a decrease of more than 60%, to just $51.6 billion.
Observers are counseling financiers to proceed cautiously while contemplating additional allocations in the virtual currency arena. Matrixport anticipates that the capacity for alternative digital currencies to surge will be constrained.
A Matrixport document underscores a noteworthy decrease in earnings for Pump.fun, a prominent venue for initiating meme-based digital currencies.
As per Matrixport observers, Pump.fun has amassed in excess of $582 million in earnings over the previous annum, rendering it among the most lucrative virtual currency endeavors of this iteration. Nevertheless, current earnings augmentation has decelerated substantially.
Information from DefiLlama demonstrates that Pump.fun’s everyday earnings have diminished beneath $1 million commencing March 8th, reverting to tiers witnessed in September 2024. This constitutes a pronounced divergence from January 2025, when the venue was yielding as much as $4.38 million on a daily basis.