Solana’s Pump.fun has recorded its lowest number of launches in five months, signaling a decline in the meme coin economy on the blockchain. However, the drop in launches might reflect a shift in focus amid the growing buzz around Tron blockchain’s SunPump.
Crypto markets are buzzing over Justin Sun’s SunPump, as the Tron executive rolls out strategies to attract more stakers, expand market share, and enhance profits.
Solana-based Pump.fun Launches Drop
According to Step Finance’s Solana Floor analysis tool, the number of launches on Pump.fun has hit its lowest point in 151 days. The platform averaged 15,217 daily launches between August 5 and 11. By the week ending August 25, the average had dropped to 8,003 daily launches, marking a 47% decline in activity.
“On August 25, pump.fun recorded 5,987 deploy transactions, its lowest number of token launches since March 28. This dramatic decline in activity suggests that the market’s appetite for new tokens is dying, with traders feeling overwhelmed by an oversaturated memecoin economy,” the report read.
Data from Dune Analytics supports this trend, showing a decrease in trade volumes among traders in the Solana meme coin market.
Read more: What Is TRON (TRX) and How Does It Work?
Along with the decline in transactions, revenues generated by the platform have also taken a hit. The report notes an average of 5,880 SOL per day during the week ending August 11. In the week ending August 25, Pump.fun’s daily revenue averaged just 3,539 SOL, marking a nearly 40% drop in revenue within two weeks.
“While the drop in average daily revenue is larger between weeks ending on the 18th and the 25th, this is largely due to outsized activity on the day of the Musk/Trump 𝕏 Space. The landmark event boosted activity on Pump.fun to unprecedented levels, helping the app generate over 35,000 SOL in revenue. Beyond the drop in activity, Pump.fun’s reduction in revenue may also be due to recent changes in its mechanics. On August 9, the platform announced it was abolishing token creation fees, which were previously $2,” the report explained.
Meanwhile, as Solana’s Pump.fun experiences declining trading volumes and revenues, its market rival, Tron blockchain’s SunPump, is seeing explosive growth.
SunPump Grows at Pump.fun’s Expense
Traders seem to have shifted their focus to Justin Sun’s SunPump on the Tron blockchain. Aiming to attract more stakers, Justin Sun has extended the energy cap to 120 billion with the community’s approval.
“Proposal No. 92 of the TRON community is now in effect, raising the energy cap to 120 billion. This means more transactions for TRX stakers, lower Gas Fees, and increased network activity. I’m impressed by the TRON community’s execution,” Sun announced.
BeInCrypto reported on these plans last week, noting Sun’s goal to expand market share and increase profits while maintaining profitability. He also aims to achieve over 20 million daily transactions within three months. However, despite these ambitions, the Solana Floor analysis raises doubts about SunPump’s ability to dethrone Pump.fun as the dominant platform.
“While touted as a pump.fun competitor, Sun.pump still falls well short of Pump.fun’s activity. Since launching on August 9, Sun.pump has facilitated the launch of over 46,000 tokens, 77% less than Pump.fun’s 193,000 launches in the same time frame,” the analyst reports.
Read More: How to Buy Solana Meme Coins: A Step-By-Step Guide
Despite the skepticism, SunPump remains a strong contender, directly challenging Pump.fun’s dominance. The growing hype around SunPump meme coins could drive Tron transactions beyond the 29% growth achieved in the second quarter.
Meanwhile, Ran Neuner, founder of Crypto Banter, views the surging interest in Tron’s meme coins as a potential opportunity for investors to accumulate SOL.
“This may be your final opportunity to snap up SOL while all eyes are on TRON,” Neuner wrote.
Trusted
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
