Solana: Why are traders still optimistic despite 98% of tokens ‘dying young’?

Solana (SOL) has experienced a vibrant month, as the network continuously witnessed a wave of new tokens being launched at a record pace. However, the surge in quantity does not equate to the ability to sustain in the long run.

Most of these projects only resemble short-term fads rather than sustainable development plans. However, derivative data reveals that behind the flood of "flash-in-the-pan" tokens, there may be many factors worth the attention of investors.

Low-value token wave

In August alone, over 1.34 million new tokens emerged on the Solana network. For the past three months, the wave of token issuance has remained high, with an average of 40,000–50,000 SPL tokens created each day.

Source: This huge number reflects the strong appeal of Solana along with its low-cost advantage, but in reality, most are just short-term memecoins, lacking clear application value.

The Harsh Reality of Memecoins

The memecoin craze on Solana is most clearly demonstrated through Pump.fun – the launchpad platform that "drops" thousands of new tokens every day.

According to ChainPlay's research on nearly 970,000 tokens, an average of 10,417 tokens are created every 24 hours, but after just one day, nearly 9,912 tokens have disappeared. The average lifespan of these coins is a mere 12 days, with 15% "dying" on the very first day.

Source: ChainplayIt is harsher, as up to 98% of memecoins on Pump.fun cannot survive for more than three months.

This reality shows that the majority of new tokens on Solana are only short-term trends, lacking long-term value – and further highlights the importance of projects with real utility foundations.

Increased confidence despite everything

However, the derivatives market is painting a completely different picture.

Source: CoinGlassData shows that open contracts on Solana futures have surged to 12.78 billion USD at the time of writing, clearly reflecting that traders are betting on strong volatility ahead.

Notably, the funding rate has maintained a positive level of 0.0127 for over a week, indicating that Long positions continue to dominate.

Source: CoinalyzeIgnoring the noise from the short-term memecoin wave, this sustainable optimistic signal could be evidence of the expectation that more mature projects will take the Solana ecosystem a step further on its journey to conquer new milestones.

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