Memecoins Plunge as SEC Ruling Dims Speculative Frenzy, Stocks Fall
1min read Token launches on pumpfun have experienced a significant decline, falling to levels last seen in September 2024. This downturn is attributed to the U.S. Securities and Exchange Commission's (SEC) ruling that memecoins are not securities. This decision, rather than fueling further speculation, has deflated the market's enthusiasm, removing the risk premium that once drove wild price swings. With fewer traders chasing quick gains, the focus has shifted towards blockchain projects with real utility.
The speculative frenzy surrounding memecoins appears to be waning. Daily token launches on PumpFun peaked around late December 2024, surpassing 50,000 tokens at its height. However, activity has since plummeted, with launch levels now matching those of September 2024, before the most recent wave of speculative mania took hold. This drop indicates a waning interest in pump-driven tokens, or memecoins, as traders grow cautious about depleting liquidity and the high volume of past launches may have caused market saturation.
The SEC’s ruling that memecoins are not securities was initially seen as a win for the sector, removing the risk of enforcement actions. However, this newfound clarity has inadvertently stripped memecoins of a key driver of their speculative appeal – uncertainty. Previously, traders thrived on the regulatory gray area, betting on price volatility fueled by the fear (or hope) of crackdowns. Now, with no existential legal threats, memecoins lack the urgency and high-risk allure that made them attractive short-term plays.
Speculative mania around memecoins was fueled by narratives of regulatory arbitrage, positioning them as the “wild west” of crypto. The SEC’s decision neutralizes this appeal, classifying memecoins as collectibles, similar to NFTs, rather than high-stakes gambles. Combined with declining liquidity and fewer new launches, this shift may mean the memecoin cycle will cool down unless a new speculative trigger sparks renewed interest.
As the market matures, investment trends are shifting towards real-world asset (RWA) tokenization, projected to surpass $50 billion this year. Institutional interest is rising, with significant commitments to private markets and the launch of private credit ETFs. These moves signal a maturing market focused on utility over speculation. As memecoins lose momentum, blockchain adoption in finance and infrastructure acceler 
