Meme Coin Volume Drops as Perp DEXs Surge 200%

According to Dune data analyzed by expert Adam Tehc, Solana meme coin launchpads recorded just $89.7 million in daily bonding curve trading volume on Sunday, marking the lowest single-day figure in three months. The weekly total of $796.2 million represents the weakest performance in over six months, down significantly from the previous week’s $1.36 billion. Bonding curve trading, which measures meme coin activity before tokens graduate from platforms like Pump.fun, serves as a crucial indicator of grassroots crypto speculation. This metric captures trading that occurs before a meme coin reaches the $66,000 market cap threshold required to graduate from Pump.fun, making it a pure measure of early-stage meme coin enthusiasm.

The decline in bonding curve volume coincides with a massive surge in perpetual futures trading on decentralized exchanges. Perp DEX volume skyrocketed to $466.8 billion last week, representing a staggering 200% increase from the previous week’s $155.1 billion. This inverse relationship between meme coin and perp DEX volumes highlights a clear capital migration pattern, with traders abandoning the meme coin ‘trenches’ for the high-leverage opportunities offered by perpetual futures platforms.

The shift toward perpetual futures trading has been dramatically illustrated by the explosive growth of multi-chain perp decentralized exchange Aster. The platform captured trader attention with its unprecedented 1001x leverage option and received vocal backing from Binance co-founder Changpeng ‘CZ’ Zhao. This combination of extreme leverage and high-profile endorsement propelled Aster’s token to soar 2,000% in its first seven days of trading, with many traders positioning it as a potential rival to established perp exchange Hyperliquid.

Despite this remarkable surge, users of prediction market Myriad—launched by Decrypt’s parent company DASTAN—remain cautious about Aster’s prospects. Market predictors place just a 33% chance on Aster reaching $4 before November, indicating tempered expectations despite the platform’s initial success. This caution reflects the inherent volatility and risk associated with new crypto platforms, even those experiencing rapid growth and attracting significant trading volume.

Perpetual futures allow traders to speculate on asset price movements without owning the underlying assets, enabling both long and short positions. The appeal of heavy leverage has proven particularly attractive to the same ‘degen’ traders who typically dominate meme coin markets. As Pump.fun livestreamer and trader Ediz explained, ‘Leverage allows you to trade with your $1,000 like it’s worth $10,000 or $100,000. The risk is higher because of liquidation but degenerates do not care.’

Despite the current downturn, experienced meme coin traders maintain that this represents a cyclical pattern rather than a permanent shift. Pseudonymous trader 0xWinged told Decrypt that many meme coin traders are ‘sidelined from the Aster trade and are patiently waiting for volume to rotate back into the trenches.’ The trader emphasized that they ‘don’t think it matters’ that volume is down, characterizing meme coins as inherently ‘cyclical’ with traders eventually returning to the space.

This perspective is grounded in historical patterns. Six months ago, the meme coin trenches faced similar challenges as they attempted to recover from Solana’s more than 50% drop from its January all-time high. As Adam Tehc reflected on the March situation, ‘Memes took a big hit, we’ve since recovered a bit. To be back there we’d need to see a sustained volume drop over several weeks, traders are just gambling elsewhere.’ This historical context suggests that current conditions represent a temporary rotation rather than a fundamental breakdown in meme coin appeal.

However, Ediz points to deeper issues within the meme coin ecosystem, noting that ‘the trenches are tired’ after a long summer of trading. He described a market where ‘people barely hold coins past a 2x anymore because of PTSD and trauma,’ with the environment becoming ‘way too extractive’ due to excessive farming, bundling, and multi-walleting. Despite this fatigue, underlying optimism persists, with Myriad predictors placing a 54% chance on PUMP reaching $3 billion rather than dropping to $1 billion, suggesting continued faith in the ecosystem’s resilience.

The consensus among seasoned participants suggests that the current meme coin downturn represents a natural market cycle rather than a permanent decline. As 0xWinged noted, there are periods where meme coin volumes cool off as traders ‘look elsewhere for returns, and cleanse their pallets for degeneracy.’ This rotation allows markets to reset and prepares the ground for the next wave of meme coin activity.

Both Adam Tehc and 0xWinged express confidence in the eventual return of meme coin volumes. ‘I think volumes will return,’ Tehc stated, while 0xWinged added, ‘It will come back, I’m sure. I need the trenches back.’ This shared expectation among experienced traders suggests that the current capital migration to perp DEXs represents a temporary phenomenon rather than a fundamental shift in crypto trading behavior, with the cyclical nature of meme coins likely to bring traders back to the trenches once the appeal of high-leverage perp trading normalizes.