A Meteoric Bet on Memecoins

Key Takeaways

• MET is ultimately a bet on memecoin activity remaining strong on Solana. Meteora does not capture most of the initial PvP volume, but it has become one of the main liquidity venues for memes that survive beyond the launch phase.
• Meteora’s weekly volume has bounced 2.4x from its August low to around $1.5B. Memecoins account for only 30% to 45% of volume in recent weeks, but generate more than 90% of revenue because traders pay higher volatility based fees.
• Meteora captures around 30% of Fomo’s Solana memecoin volume and 25% to 35% of memecoin flows routed through Jupiter. This makes MET one of the clearest liquid ways to gain exposure to the growth of two of Solana’s most important distribution funnels.
• DLMM gives LPs 90% of trading fees compared with 84% on Raydium’s CLMM, while Meteora generated more volume per dollar of TVL in 10 of the 12 pairs we studied. These stronger LP economics help Meteora build competitive liquidity and continue winning routes despite charging higher effective fees.
• At around a $370M FDV, MET trades on a revenue multiple closer to PUMP than Raydium. Some discount is justified given that memecoins generate 90% of its revenue. However, the current gap looks too wide when 60% to 70% of Meteora’s volume comes from other assets and it captures successful tokens across Solana, regardless of which launchpad they originated from.
• Staking has become an effective supply sink for MET, with 128M tokens, or around 23% of circulating supply, now staked. Stakers currently earn an estimated APR of 15%, largely funded by actual DLMM revenue rather than additional token emissions.