The trading activity of Solana[SOL] Pump.fun tokens, primarily consisting of meme coins, has witnessed a significant decline in February.
It is noteworthy that in the middle of January, the trading volume of Pump.fun tokens reached its peak at $3.1B on Raydium, a decentralized exchange.
However, a mere two weeks later, the trading volume within the ecosystem plummeted to $569M, marking an 81% decrease.
Weakening Trend in the Broader Altcoin Market
Putting the recent sequence of liquidations into perspective, the altcoin market faced a loss of $234B within a span of two weeks.
Evidently, the subdued trading activity around memecoins is indicative of a broader market slowdown following a significant liquidation event and prevailing macroeconomic uncertainties.
The total market capitalization of altcoins has shrunk from $1.896T to $1.450T since last December, representing a considerable decrease of nearly $450B over the past two months.
Despite this downward trend, certain prominent Pump.fun assets, particularly those related to the AI/DeFAI narrative, maintained a strong position.
For instance, Fartcoin led the rankings, closely followed by AI Rig Complex (ARC). Additionally, other AI-oriented tokens such as Griffain and ACT secured positions among the top 10 Pump.fun tokens based on their market capitalization.
Given the prevalent influence of the AI narrative within the ecosystem, these assets may exhibit a quicker recovery in case of an improvement in market sentiment compared to more traditional memecoins.