Memecoins have shown no signs of a quick recovery after the pronounced drop in the crypto market in mid-February. According to Matrixport's latest report, despite the increase in liquidity due to the weaker US dollar and improving inflation data, the memecoin market remains untouched.
In a previously published report, automated market makers such as Serum, operated by Matrixport analysts, tightened their positions, and the total value of locked Raydium fell by 71%. Meanwhile, Solana's own TVL fell by 37%.
An increase in global liquidity, measured by the money supply of 28 central banks around the world, usually provides a stimulus for alternative investments. In addition, Matrixport said the US inflation report showed better-than-expected results, despite trade policy uncertainty over the possibility of monetary easing from the Fed.
When central banks inject more liquidity into the market or support accommodative policies, investors feel more comfortable investing in risky assets such as cryptocurrencies, which increases prices and trading volumes.
However, Matrixport's analysis shows that its effect has not reached the meme market. The total market capitalization of memes reached an all-time high of $137 billion last December. Since then it has dropped by almost $86 billion, or more than 60%, to just $51.6 billion.
This has led analysts to conclude that investors have decided to be cautious about investing further capital in the cryptocurrency market. As a result, Matrixport anticipates that the recovery in the altcoin sector will be limited.
The Matrixport report also highlights how leading meme launch platform Pump.fun's revenue has fallen sharply in recent months.
“Over the past 12 months, Pump.fun has generated revenue of over $582 million, making it one of the most profitable crypto projects of this cycle. However, revenue growth has declined sharply in recent times,” Matrixport analysts write.
World Liberty Financial, a decentralized finance project directly linked to the Trump family, has raised $550 million by selling its WLFI tokens, ICO drops data shows.
With the latest round of financing, the project’s valuation is believed to have exceeded $1.5 billion, and earlier reports had indicated that World Liberty Financial was looking to raise $300 million to reach this goal. The project has raised $590 million so far since November 2024, when it first received $30 million from TRON founder Justin Sun, who was born in China.
It is unclear how many tokens were sold. Earlier reports had indicated that World Liberty Financial might sell up to 20% of the total token supply. Project co-founder Jack Folkman reportedly mentioned on X that more than 60% of the supply would be sold to the public, with 17% allocated for user rewards and 20% for the team.
In mid-February, Crypto.News reported that World Liberty Financial sold more than 24 billion tokens, leaving about 950 million tokens available for purchase. When the project was launched in September 2024, the original plan was to offer 20% of the 100 billion WLFI tokens.
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