Anika Begay
THE Solana Meme Coin Ecosystem has been one of the main topics of discussion in this bull run, as cryptocurrency investors continue to bet on tokens that are launched by the Pump.fun meme coin generator. However, Solana traders may have second thoughts, as data from on-chain analytics platform Dune shows declining interest in these meme coins.
Pump.fun Sees Massive Drop
Dune Analytics data shows a massive drop in the number of new weekly addresses on Pump.funindicating a decline in interest in the meme coins generated on the platform. During the week ending August 12, Pump.fun registered 33,333 new addresses on its platform, a significant drop from the previous week when it registered 212,699 new addresses.
A broader picture shows that the number of new weekly addresses on the platform has declined since the week ending June 17, when it peaked at 349,032 new weekly addresses. This decline can be attributed for various reasons. First, the meme coin generator has been widely criticized for making it easier for scammers to carry out pump-and-dump schemes.
Anyone can distribute a meme coin via Pump.fun for just $2, a move that has undoubtedly led to a surge carpet pullerwhereby token developers dump all their holdings on traders and suck all the liquidity out of the token. Also, the ease of creating a meme coin via Pump.fun has made the Solana meme coin ecosystem oversaturated.
This has made meme coin trading on Solana Network less profitable and too risky, which explains why traders are losing interest in Pump.fun and, by extension, Solana meme coins. Cryptocurrency enthusiast Adam recently highlighted how Pump.fun has become a “slaughterhouse” for meme coin degenerates.
In an X (ex Twitter) sendAdam noted that 16,357 tokens were launched on Pump.fun on August 10th, while only 175 arrived Raydium (a decentralized exchange). This means that only about 0.12% of the meme coins launched that day on Pump made it to Raydium, where these tokens enjoy greater visibility and can reach new highs. From a trading perspective, there is only a 0.12% chance of making life-changing gains from coins launched on the platform.
Pump.fun must do better
Members of the cryptographic community they continued to uproar For Pump.fun to implement mechanisms that can help curb the innumerable number of carpets being thrown on the platform. One is the potential increase in the fee required to create a token on the meme coin generatorMembers of the crypto community believe that this could discourage developers whose sole purpose is to build a pump-and-dump scheme.
However, requests for a higher token creation fee were ignored. Instead, Pump.fun recently announced that coin creators will receive 0.5 SOL when their coin completes the binding curve and progresses into Raydium.
It is worth noting that the launch of the meme coin has continued to generate millions of dollars in revenue, even at the expense of meme coin traders. Data from Dune Analytics shows that Pump.fun has a total revenue of $90 million. In May, former employee Jarett Dunn mentioned how the platform has been “inadvertently harming people for a long time,” as it drained nearly $2 million from Pump.fun and distributed it to random wallet addresses.
Featured image created with Dall.E, chart from Tradingview.com
