Matrixport: Memecoin market still in a slump despite global liquidity improving

Matrixport analysts reveal that the memecoin market still has not recovered from the previous crypto market crash despite global liquidity on the rise.

Memecoins have shown no signs of recovering any time soon after the apparent crypto market crash in mid-February. Even though the U.S. dollar weakening has sparked a rise in liquidity and improvements in inflation data, the memecoin market remains unaffected, according to the latest Matrixport report.

In a previously published report, Matrixport analysts warned traders of an upcoming crypto consolidation phase, specifically one that would affect memecoins. Since then, recent analysis has shown that liquidity in Solana (SOL)-based automated market makers like Serum has tightened, with Raydium’s total value locked dropping 71%. Meanwhile, Solana’s own TVL has fallen as much as 37%.

The rise of global liquidity, measured by the money supply of 28 central banks around the world, would normally provide a boost to alternative investments. Not only that, Matrixport noted that the U.S. inflation report revealed results that were better than expected, despite the fact that uncertain trade policies continue to loom over the possibility of the Fed relaxing their monetary policies.

When central banks inject more liquidity into the market or maintain accommodative policies, investors feel more comfortable investing in riskier assets, such as crypto, pushing up prices and trading volumes.

However, Matrixport’s analysis shows that affect has not transferred into the memecoin market. In December last year, the overall memecoin market cap reached a peak as high as $137 billion. Since then, it has decreased around $86 billion or more than 60% to only $51.6 billion.

This has led analysts to conclude that investors have chosen to remain cautious about deploying more capital into the crypto market. As a result, Matrixport predicts rebounds in the altcoin sector to be limited.

Matrixport’s report also highlighted how Pump.fun, the leading memecoin launchpad platform, has seen a sharp decline in its revenue in recent months.

“Over the past 12 months, Pump.fun generated revenues exceeding $582 million, making it one of this cycle’s most profitable crypto projects. Recently, however, revenue growth has sharply declined,” wrote Matrixport analysts.

According to data from DefiLlama, Pump.fun’s daily revenue has dropped to below $1 million since March 8 and has returned to levels previously seen in September 2024. Even though in January 2025, the launchpad was able to generate up to $4.38 million in daily revenue.