Solana became one of the most popular blockchains in 2024 following a surge in decentralized applications (DApps) and blockchain projects building on the network. Within this ecosystem, meme coins like PENGU, PNUT, POPCAT, and ACT emerged as key players, attracting substantial funds into the Solana ecosystem. However, their speculative nature has made them a risky gamble for traders.

For context, most meme coins launching on Solana offer minimal utility or long-term vision, primarily serving as speculative assets. While they provide opportunities for significant gains, they come with high risks, reflecting the volatility and unpredictability of this crypto category.

Typical Meme Coin Behavior

Meme coins become a thing whenever there is a crypto market bull run. Many such tokens become spotlighted because of the exceptional rallies and unprecedented returns. They churn out whenever the crypto market surges. That is a typical behavior of this category of crypto assets despite the persistent uncertainty among them. 

However, their notorious volatility also makes them prone to steep declines. This duality is a defining trait of meme coins, attracting experienced traders willing to gamble on high-risk opportunities.

For example, the PENGU token recently launched on Solana with a $2.3 billion market cap. Within hours, its trading volume soared to $425 million, and its price surged to $0.068. However, this was short-lived as selling pressure from top holders caused a 54% decline, dropping the price to $0.031. On-chain data confirmed that significant sell-offs led to the rapid drop.

Similarly, PNUT, an older Solana meme coin, displayed extreme volatility. After rallying 55% in early December, its price quickly plummeted to new lows, leaving investors disappointed. POPCAT and ACT followed similar trajectories, with early price surges giving way to sharp declines. These patterns have led many traders to question the sustainability and legitimacy of meme coins as an asset class.

POPCAT and ACT had similar outlooks, declining significantly after initial price rallies. The listed meme coins have left many crypto traders in doubt, with many reconsidering their assessment of the crypto asset class and the ideology supporting their sustainability. Many investors suspect meme coin stakeholders may be manipulating the market, amid a growing belief that these crypto assets lack intrinsic value.

Meme Coins Fever in a Bull Market

Many crypto traders consider meme coins an opportunity to make massive returns over a short period during bull runs. Historical data show meme coins command most of the highest crypto market returns. Some meme coins earned thousands in percentage returns, attracting significant investment to become top cryptocurrencies. Dogecoin and Shiba Inu are the most outstanding examples of this category.

Despite making exceptional returns, meme coin pullbacks are incomparable with other crypto categories. Most of them display unmatched volatility and lose significant value over short periods. Hence, meme coins represent the most unpredictable crypto asset class, making the sector susceptible to potential discrepancies and manipulations.

Considering how easy it has become to create crypto products and decentralized applications, the crypto industry has experienced an influx of tokens. The assumed lack of accountability in terms of utility makes it easier for anyone to create and launch meme coins. That explains the surge in meme tokens flooding the cryptocurrency market.

Meme Coin Potentials in the Bull Market

Although most meme coins have been disappointing in the current bull run, analysts believe their time is yet to come. We are in the bull market’s beginning stages, with the altcoin season yet to enter full swing. Bitcoin is showing the way by rallying significantly and recording new all-time highs. Typical bull run behavior suggests a Bitcoin slowdown would happen, with a consequent capital transfer that will trigger an altcoin season.

Crypto speculators believe most altcoins, including meme coins, will explore the capital transfer to fulfill their bullish potential. According to historical data, notable meme coin rallies occur during the altcoin season. However, knowing which meme coin would steal the show when the rally begins is difficult.

The meme coin scenario has become more complicated with the many new tokens in that category flooding the crypto market. Unlike in the past bull cycles, when there were few meme coins, there are currently thousands of meme coins in the crypto market. Retail traders observe the meme coins, looking for those with the most beneficial speculative opportunities. Most often, trading meme coins turns out to be a worthwhile gamble. However, inherent risks abound, as investors could lose their capital quickly.

The Bitcoin Influence

Bitcoin remains the primary driver of market trends, setting the tone for other cryptocurrencies. After surpassing $100,000 and peaking at $108,364, Bitcoin’s pullback to $104,248 suggests a potential capital shift to altcoins, including meme coins. Traders speculate that Bitcoin’s bullish momentum may lay the groundwork for a broader altcoin rally.

This feat by Bitcoin confirms a notable capital inflow in the cryptocurrency sector, increasing the chance of capital transfer to other ecosystems, including the meme coin sector. Bitcoin’s bullishness forms the backbone for many crypto hopefuls looking ahead to an exciting adventure in the coming months. However, it is crucial to note that crypto trading is a risky venture, especially investing in meme coins.

Meme Coin 2025 Expectations

Every bull cycle is unique with its dynamism, considering the Bitcoin halving and other associated mainstream events. Many crypto analysts are optimistic that most altcoins, including meme coins, will express their bullish potential in 2025. The core reason behind this assumption is Donald Trump’s return to the Whitehouse, considering his promise to create a more friendly regulatory environment for crypto in the U.S.

Crypto users are waiting to see the incoming president’s actions, expecting an influx of investments in the crypto market. Meme coins tend to rally alongside other altcoins, despite the selective approach of crypto users in the sector. Therefore, most meme coin traders may use the current price decline as an opportunity to accumulate individual cryptocurrencies of their choice. However, traders can only speculate on which meme coins will do well when the surge begins.

Read also: Solana Memecoins WIF and BOME Eyes Slump Amid Market Gains

Meanwhile, the overall meme coin sector is on the decline at the time of writing, with most top meme coins dropping in value. Dogecoin, the largest meme coin by market cap, declined 2.34% in the past seven days, while Shiba Inu, the second-largest meme coin by market capitalization, fell by 5.03%.

PEPE, BONK, and WIF recorded significant pullbacks, contributing to the meme coin sector’s decline in market cap from $137.06 billion to $112.81 billion within the past week. The sector’s recovery could signal a potential bounce for the crypto market, considering the growing interest in meme coins by speculators in the crypto market.

Risk vs. Reward in Meme Coin Trading

Many meme coins do not have intrinsic value and can only be used for speculation. Insincere participants in the sector who create crypto tokens out of dubious intentions can also expose meme coin traders to the risk of manipulation. Hence, it is important to scrutinize crypto projects, especially meme coins, before investing in them. That way, users can minimize the risk of falling victim to failing projects, while exploring the potential opportunities in the crypto market.