81% of Memecoins in Study Crashed 90% From Peaks

A new study analyzing 150 memecoins reveals a stark trend: 81% of them plummeted at least 90% from their all-time highs, with only five managing to recover those peaks later. The research, focused on tokens launched during the so-called Solana Memecoin Era, which began in December 2023, highlights the volatile nature of these digital assets.

The median token reached its peak just 17.2 days after its first trade on a centralized exchange, with a quarter hitting their highs within a mere 1.6 days. However, the decline was swift: the median time from an all-time high to a 95% drop was 370 days. By day 1,000, roughly 90% of the tokens had fallen 95% from their peaks.

The study defines a token’s lifecycle as starting with its first exchange trade and considers a 95% drop from the peak as a collapse. It notes that the sample may not represent all memecoins, as it excludes tokens without a price on centralized exchanges, potentially making the measured lifespans longer than typical launchpad tokens.

The analysis also mentions 151 tokens in a separate price comparison but does not explain the discrepancy. The study describes its 95% threshold as arbitrary and its results as illustrative rather than definitive.