Memecoins have suffered extensively as the crypto market experienced reduced liquidity. The sector’s market cap fell from $85 billion in 2025 to $29 billion as of this writing.
Over the same period, memecoin trading volume fell from $18.5 billion to $3.5 billion, an 81% decline. This trend has been especially extreme on Solana.
Memecoin trading volume share on Solana drops to 20%
Solana’s market participants have significantly reduced their exposure to memecoins. According to SolanaFloor, memecoins now account for a mere 20% of trading volume on Solana DEX.
This marks a massive drop from previous cycles, especially during memecoin-driven pumps. During late 2024 and early 2025, memecoins accounted for 40-70% of Solana’s DEX trading volume.
The decline shows a significant cool-off in activity and reduced demand, reflecting rising risk-off sentiment in the market.
With the volume declining, the number of traders has declined considerably across all chains. On Solana, for instance, the number of traders fell from 4.4 million in 2025 to 400k.
On other chains such as BNB, it fell to 300k while dropping below 100k on Ethereum and Base. This decline was also accompanied by a lower number of transactions on Solana, falling from 45 million to 15 million, a trend observed across chains.
Coupled with that, the number of both recurring and new traders dropped sharply. Daily, new traders fell from over 2k to below 1k, while recurring traders fell from 5k to 1.7k.
The reduced trading activity signaled a clear bearish trend, with lower demand for memecoins as old traders stayed out of the market. The markets failed to attract new potential traders as well, further weakening demand-side liquidity.
What’s ahead for memecoins?
Memecoins continued to decline as investors stepped away from assets perceived as high risk.
As a result, demand-side liquidity has plummeted, causing further market stress. Even more concerning is that most traders are on the sell side.
Dune Analytics data showed that 55% of trading volume was on the sell side, compared to 44% on the buy side. So, most memecoin traders are currently bearish and see exiting as a better option.
These market conditions point towards extended weakness for memecoins. If seller dominance persists while traders step back, the sector’s volume could drop below $3 billion, with market cap falling towards $25 billion.
Final Summary
- Memecoins’ share of the Solana DEX remained at 20% for an extended period, signaling reduced market activity.
- The trading volume of memecoins fell 81%, dropping from $18.5 billion to $3.5 billion.
