Key facts:
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Memecoin creation platform pump.fun is experiencing its worst performance since launch.
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The crash coincides with the SunPump breach of the Tron network.
The hype surrounding pump.fun, the Solana network’s memecoin creation platform, seems to be coming to an end. Despite its huge growth in 2024, its hegemony is being eclipsed by its peer in the Tron ecosystem, SunPump.
As CriptoNoticias already reported, Ethereum-pumpfun/” target=”_blank” rel=”noreferrer noopener”>pump.fun It started operating in February and It became a widely used platform due to the appetite for memecoinswhich are assets created to honor a pet, celebrity or political figure and are used for financial speculation.
So far in 2024, these assets have had a great Bitcoin-criptomonedas-serias/” target=”_blank” rel=”noreferrer noopener”>popularity and perhaps its acceptance is one of the reasons for the growth of Solana memes.
Through the platform, users can make their own tokens without the need for advanced knowledge, in a matter of seconds.
As highlighted in its place web, to do so they just have to write their name, ticker, description and an image to create their own meme coin.
From February until the time of publication of the article, 1,907,000 assets were created on pump.fun, generating a total of 672,233 SOLthat is, more than 9 million dollars.
However, starting in August, the platform saw a significant drop in activity. In the week from the 19th to the 25th of that month, users only created 8,003 meme cryptocurrencies worth 3,539 SOL, just $507,200. This is the lowest number in the last 151 days.
To give you an idea of what this drop means, in the week of August 5-11, 15,217 tokens were created on pump.fun, worth 5,880 SOL, or about $843,000. If we compare these two weeks, the corresponding one from the 19th to the 25th marks a 47% declineapproximately.
In the following graph Dune Analyticsthe green bars represent the token generation per day on this platform and a decrease in activity can be seen in recent days.
The green bars symbolize the creation of tokens per day on pump.fun. Source: Dune Analytics.
This lack of appetite for Solana network memes coincides with the emergence of SunPump, the Solana token trading platform. Blockchain-criptomoneda-contratos-inteligentes-red-social-apps/” target=”_blank” rel=”noreferrer noopener”>Tron, which in two weeks has been showing significant growth.
To cite an example, the rapid adoption of this platform impulse the price of TRX, the network’s native token, at levels not seen since 2021, as seen in the following graph:
TRX price from 2020 to August 29, 2024. Source: TradingView.
Finn Miller, research analyst at Solana, casts doubt on the network created by Justin Sun is to blame for this moment that pump.fun is going through. On this matter, he said: “This dramatic decrease in activity suggests that the market’s appetite for new tokens is dying, and traders are feeling overwhelmed by an oversaturated memecoin economy.”
The numbers contradict Miller’s reading. According to data from Dune Analytics59,483 tokens have been created on SunPump, generating revenue of 24 million TRX, representing $3.8 million.
Miller also mentions the changes announced by the platform on August 9, which eliminated the token creation fee, which was previously 0.02 SOL, or $2.87.
According to reportedUnder this new policy, the cost is borne by the first buyer of the token, in an attempt to encourage developers to succeed with their digital currencies, rather than abandon them.
For several users, meanwhile, the elimination of the creation fee could result in a saturation of memecoins and, therefore, Investors would lose interest in this niche market.
As for SunPump, Miller notes that it promotes itself as its main competitor but clarifies that “since its launch until August 9, it has facilitated the launch of more than 46,000 tokens, 77% less than pump.fun’s 193,000 launches in the same period,” he detailed.
However, Miller is making the wrong analysis, as he should be comparing the numbers he mentions with those from the weeks following the launch of the Solana platform, which are much lower.
In conclusion, the analyst believes that “the decline in pump.fun activity may alter the dynamics of the memecoin market.”
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