Solana became the home of meme coin trading in 2024. Launchpads made it possible to create a token in minutes for a few pounds, and fees were low enough for anyone to trade. Activity peaked in January 2025, when the launch of the TRUMP token drew huge volumes and SOL itself reached a new all-time high.
Within weeks the mood had changed. Many of the largest Solana meme coins fell sharply, trading volumes on Solana exchanges dropped and launchpad revenues came down from their peak.
What drove the downturn
Speculative fatigue
Most meme coins have no cash flows or product, so their value rests on attention. When attention moved on, prices had little to fall back on. Thousands of new tokens launching every day also spread buyers thinner.
High-profile collapses
In February 2025 the LIBRA token, promoted on social media by Argentina's President Javier Milei, rose and collapsed within hours, prompting investigations. Events like this damage trust across the whole category.
Wider market pressure
Early 2025 brought tariff uncertainty and a broad risk-off move. When Bitcoin falls, smaller and more speculative assets usually fall further — our crash scenarios show this relationship live.
Liquidity drain
As volumes fell, order books thinned. Thin markets move further on each trade, which makes both pumps and crashes more violent.
Was it manipulation?
Some commentators claimed the decline was deliberately engineered. We have not seen evidence that supports a coordinated campaign against Solana, and a boom-and-bust in a hype-driven sector is well explained by the factors above. Manipulation certainly exists in meme coins at the level of individual tokens — insider-heavy supply, coordinated pumps and rug pulls — and that is exactly what our Risk Radar screens for.
Lessons for traders
- Know the cycle. Meme coin sectors have gone through repeated booms and busts. See market cycles, explained.
- Size for the worst case. Falls of 80–90% are common in meme coins. Only use money you can afford to lose entirely.
- Check the flags. Look at supply concentration, liquidity and turnover before buying anything small.
- Watch your behaviour. Fast, 24/7 meme trading is where unhealthy habits start. Our healthy trading guide can help.
This article is for education only and is not financial advice or a recommendation to buy, sell or hold any cryptoasset. Cryptoassets are high-risk; you could lose all the money you invest.