A staggering 97% of memecoins have died, underscoring the precarious nature of these investments according to a new report.
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, which is merely one-third the lifespan of an average crypto project.
The rate of meme coin demise outpaces the creation of new projects, as 2,020 meme coin projects died each month on average.
“This rapid turnover underscores the speculative and often short-lived nature of memecoins, making them a risky investment choice.”
Despite their volatility, memecoins continue to be a popular investment choice.
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Nearly 60% of memecoin investors view these assets as short-term investments, the report found, a factor that aligns with the high turnover rate.
Different blockchain platforms exhibit varying death rates for memecoins:
- Base leads with a death rate of 66.91%, followed by
- Solana at 54.03%, and
- Ethereum at 36.59%.
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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 affected by malicious activities, according to the report.
- Over half of all memecoins (55.24%) are deemed malicious. Base again tops the list with the highest rate of malicious memecoins at 59.15%, followed by Ethereum at 55.59% and Solana at 51.87%.
- Nearly one-third of investors (28%) have reported losses due to scam memecoins, highlighting the critical need for due diligence.
The perception of memecoins varies significantly among different investor groups.
- While 54% of all memecoin investors do not consider these assets essential to their portfolios,
- nearly 58% of new investors (those in the market for less than six months) view memecoins as crucial.
- In contrast, only 1/3 of investors who have been in the market for over a year see memecoins as a must-have.
“This indicates that as investors gain experience and perhaps suffer losses, they tend to adopt a more cautious approach toward memecoins,” noted the report.
“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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