Memecoin Market Analysis by Matrixport

Matrixport analysts reveal that the memecoin market has not recovered from the previous crypto market crash, despite rising global liquidity.

Memecoins are showing no signs of recovery after the mid-February crypto market crash. Even with a weakened U.S. dollar resulting in increased liquidity and better inflation data, the memecoin market remains stagnant, according to a recent Matrixport report.

In an earlier report, Matrixport analysts warned traders about an upcoming consolidation phase in crypto, particularly impacting memecoins. Recent analysis indicates that liquidity in Solana (SOL)-based automated market makers, like Serum, has tightened, with Raydium’s total value locked dropping by 71%. Additionally, Solana’s own total value locked has decreased by up to 37%.

> 📃#MatrixOnTarget Report – Mar 14, 2025
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> Liquidity Improves, Meme Coins Lag, Bitcoin Risks Persist
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> This week’s report analyzes data from @pumpdotfun, @RaydiumProtocol, and other @solana products, exploring the core reasons behind the significant fund decrease and ongoing risks…

The increase in global liquidity, as measured by the money supply of 28 central banks, would typically encourage investment in alternative assets. Moreover, Matrixport noted that the recent U.S. inflation report exceeded expectations, even though uncertain trade policies might hinder the Federal Reserve’s ability to relax monetary policies.

When central banks inject liquidity or maintain accommodative policies, investors often feel emboldened to invest in riskier assets, such as crypto, driving up prices and trading volumes. However, Matrixport’s analysis shows this effect has not reached the memecoin market. In December, the memecoin market cap peaked at $137 billion but has since dropped by over 60% to $51.6 billion.

This has led analysts to conclude that investors are cautious about deploying more capital into the crypto market, limiting the potential for rebounds in the altcoin sector.

Matrixport’s report also outlined a sharp revenue decline for Pump.fun, a leading memecoin launchpad platform. “Over the past 12 months, Pump.fun generated revenues exceeding $582 million, marking it as one of this cycle’s most profitable crypto projects. However, revenue growth has sharply declined recently.”

Data from DefiLlama indicates that Pump.fun’s daily revenue has fallen below $1 million since March 8, returning to levels last seen in September 2024, after reaching up to $4.38 million in daily revenue in January 2025.