Most Memecoins Die Within a Year After Their Peak

Most memecoins reach their biggest price surge within weeks of launching, but the vast majority eventually suffer losses they never recover from, according to a new analysis from Coin Metrics.

The study examined 150 memecoins launched during the Solana (CRYPTO: $SOL) memecoin boom that began in December 2023. It found that the median token reached its all-time high just 17.2 days after first trading. After reaching that peak, however, the typical memecoin took a median 370 days to fall 95% from its high.

"Recovery essentially does not happen," Victor Ramirez, Senior Data Scientist at Coin Metrics, wrote in a Tuesday report. The report found that some 81% of the tokens in the sample dropped at least 90% from their all-time highs, while only 5 tokens, or 3.3%, eventually returned to those previous peaks.

The decline was also visible when looking at returns from launch. After about 300 days, a majority of the tokens were worth just 10% of their initial price. Only five of the 151 tokens analyzed were trading above their day-one price.

The researchers also found that memecoin rallies tend to be short-lived. Two-thirds of Solana-era memecoins never produced a second failed rally after their initial rise.