Despite dramatic increases in several launched tokens, the memecoin market falls to around $35.4 billion. This performance is usually supported by low liquidity, while the sector’s main assets remain stable or decline.
In brief
- The memecoin market is shrinking to around $35.4 billion, despite several dramatic increases.
- PUMP stands out thanks to the revenue and token redemptions made by Pump.fun.
- The surges in certain new tokens are based on very low liquidity and remain very fragile.
- The large memecoins are not yet participating in a widespread recovery of the sector.
- The market remains dominated by short, speculative movements highly concentrated on a few networks.
The memecoin market loses almost 4% in 24 hours
The capitalization of memecoins has just reached nearly $35.4 billion on September 29, down 3.7% over one day. Such a correction confirms an already visible trend. A previous analysis of the market had therefore revealed a capitalization of $35.2 billion and a 24-hour decline of 4.2%.
Thus, the volume of trade stands at around 4 billion dollars, according to data provided by CoinGecko. The sector is therefore not pursuing a collective increase. Capital moves quickly between certain projects and multiple networks.
The main fluctuations illustrate this fragmentation:
- Baby Cali jumped nearly 11,400%, before losing 17% in an hour;
- Shareholder Cat gained about 7,300%, then fell 37% in an hour;
- PUMP grew by almost 12% thanks to the activity of Pump.fun;
- DOG, SPX6900 and NPC lost between 11% and 14% over 24 hours.
The three largest increases concern tokens that are a few hours or days old. Indeed, their valuation remains between less than 1 million and 9 million dollars. These movements do not necessarily reflect the situation of large memecoins.
PUMP benefits from Pump.fun revenues and redemptions
PUMP stands out from all other increases because of an identifiable catalyst. Pump.fun’s native token had benefited from a capitalization close to $2.4 billion after its progression. Thus, the platform used part of its income to repurchase its tokens on the market.
Currently, DefiLlama counts $1.71 million in fees over one day, including nearly $920,000 in revenue kept by the protocol. Approximately $625,000 was allocated to holders through redemptions carried out by PUMP. These figures are continually increasing and therefore differ from the previous statement of $2.11 million.
Over thirty days, Pump.fun generated more than $46 million in fees and $34 million in revenue. Token buybacks totaled nearly $25 million over the same period. This scheduled demand provides support that the majority of memecoins do not hold.
However, PUMP suffered a reversal during the session. Its initial advance therefore does not guarantee lasting development. Buybacks can support the price, however they do not neutralize either profit taking or the general slowdown in the market.
Extreme increases hide a liquidity problem
The actual liquidity available must be compared to the percentages displayed by the new tokens. Baby Cali and Shareholder Cat only had between $289,000 and $576,000 in liquidity, despite being valued at millions of dollars.
A high capitalization does not mean that all holders would sell their tokens at the last displayed price. When the order book remains shallow, a few acquisitions are enough to cause the price to explode. So subsequent sales can trigger an equally rapid correction.
The JACK token presents a more severe example. Indeed, it lost 86% in six hours after recording $12.8 million in volume, while its liquidity did not exceed $54,000. A large position would therefore have been complicated to liquidate without a strong accentuation of the decline.
During this month of September, a published study analyzed the 15 million tokens launched on Pump.fun in two years. The researchers identify five manipulation practices, therefore the wash tradingcoordinated transfers, copies of tokens and artificial promotion on social networks.
The sector is still waiting for a real general increase
Large memecoins are not yet fully participating in the movement. PENGU, BONK and WIF fell back 2% to 6% after posting gains earlier in the week. PENGU notably jumped nearly 38% thanks to the attention surrounding Korea Blockchain Week.
The majority of increases are now focused on Solana and the Robinhood blockchain. From then on, the tokens of the latter had represented more than a third of the 30 best performances. This concentration reveals that investors are following one-off narratives rather than a lasting sector movement.
Bitcoin’s return above $85,000 would improve risk appetite. However, a true memecoin recovery may require a broader surge, sustainable liquidity, and participation from major tokens. For now, the market mostly rewards short-lived catalysts and exposes late buyers to sharp reversals.
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