DIGIVESTASI - A Recent Study Reveals 97% of Meme Coin Projects Failed in 2024, A new study conducted by ChainPlay has revealed that 97% of meme coin projects failed throughout 2024. The study utilized data from Dexscreener, analyzing 30,000 crypto assets to assess the survival rate of meme coins, focusing on three popular blockchains: Solana, Ethereum, and Base.

Analysts identified a meme coin project as "dead" if it met certain criteria, such as having a 24-hour trading volume below US$1,000, no updates on X (formerly Twitter) for three months, a liquidity pool under US$50,000, deletion of its X account, or an inactive website.

In their research, the study's authors also examined the lifespan of failed meme coins by analyzing activity on X, from domain registration dates to the last posts.

Short Lifespan of Meme Coins

The study found that most meme coins have a very short lifespan. On average, a meme coin lasts only about a year, much shorter than other crypto projects. Data from AlphaQuest revealed that an average of 2,020 meme coin projects end every month.

The failure rate of meme coins varied depending on the blockchain platform. Base had the highest failure rate at 66.91%, followed by Solana at 54.03%, and Ethereum at 36.59%.

The study also revealed that the meme coin market is rife with risky activity, with around 55.24% of projects being classified as dangerous meme coins.

Base again recorded the highest percentage of dangerous meme coins at 59.15%, followed by Ethereum at 55.59%, and Solana at 51.87%.

Approximately 28% of investors reported losses due to meme coin scams, while audits showed that 81% of predictions regarding potentially fraudulent meme coins proved accurate.

The study underscores the importance of conducting thorough research before investing, including strict due diligence in the meme coin market.

Popularity of Meme Coins Remains High Despite Risks

Researchers also gathered 1,000 news articles about meme coins from Google News and surveyed 511 crypto investors globally. This analysis provided insights into media and public perceptions of the prospects and risks associated with meme coin investments.

Meme coins appear to remain a popular short-term investment choice despite their high volatility and risk, mainly due to their potential for significant returns.

While 54% of all meme coin investors do not consider these assets an essential part of their portfolio, nearly 58% of new investors who entered the market in the past six months view meme coins as important.

Conversely, only one-third of investors who have been in the market for over a year still see meme coins as a necessary investment. This indicates that as investors gain experience, the majority tend to be more cautious in managing the risks associated with meme coins.

Meanwhile, media sentiment towards meme coins remains largely cautious. Only 13.77% of news reports on meme coins were optimistic, reflecting the widespread skepticism surrounding these investments.

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