Here’s how Pump.fun memecoins could catalyze a delayed altcoin season?
The post Here’s how Pump.fun memecoins could catalyze a delayed altcoin season? appeared on BitcoinEthereumNews.com.
Journalist Posted: February 10, 2025 Analysts argue that capital inflows into speculative tokens by Pump.fun could delay altcoin season. Can this divert liquidity from established utility projects like Ethereum? Analysts criticize the new pump-and-dump tokens on the platform as a potential diversion of altcoin capital, thus delaying the anticipated altcoin season. Historical trends suggest an eventual shift to altcoins, as FOMO is the key factor in the rising numbers of degen traders in this hyped speculative trading. Solana [SOL]-based memecoin platform, Pump.fun, has sparked mixed reactions in the market after recording 52,000 token launches on the 7th of February. Investors have expressed concerns about the impact of this trend on liquidity in the 2025 altcoin market. Some analysts argue that the rising capital inflow into memecoins might catalyze the delay of the altcoin season this year. Renowned analyst Ash Crypto ignited the debate with this X (formerly Twitter) post. He said, “ 52,000 tokens were launched on pump dot fun yesterday, and you wonder why we are not getting Altseason.” He claimed that traders have been excessively “gambling” their money on Pump.fun memecoins lately. The ease of creating memecoins on the platform attracts huge numbers of degen traders hunting quick gains more than long-term investors who bet on long-term and established utility altcoins. Current memecoin mania Recently, Pump.fun has witnessed an increased number of wallet addresses, showing growth in speculative trading amongst investors. Despite many token launches, 80% of memecoins in the platform plunged from their peaks shortly after their hyped launch. This puts profits on a few insiders and heavily punishes latecomers. On-chain metrics show a correlation between the start of President Donald Trump’s administration and the surging numbers of degen traders. In fact, the President’s family has shown support for memecoins by the launch of $TRUMP and $MELANIA…
Filed under: News - @ February 10, 2025 8:19 am