Metaplex Creates ~3x More Tokens than Ethereum + L2s Combined in March

Amidst floundering crypto sentiment, Solana infrastructure providers and essential services like Metaplex continue to flourish.

Meanwhile, $MPLX has shown relative strength in the face of challenging markets, suggesting the protocol’s buyback mechanic is supporting asset value.

With Metaplex’s NFT resizing window coming to a close, the protocol is issuing final warnings to users before claiming their $SOL.

Metaplex: Solana’s Engine Room

Despite a considerable downturn in token deployments across the crypto industry, Metaplex is still outperforming the wider Ethereum ecosystem. 

Cross-referencing data from TopLedger and Dune Analytics, Metaplex has facilitated the deployment of 867k fungible tokens in March, around 3x more than Ethereum and its L2s. 

According to a recent Messari report, this is down considerably from memecoin mania. In Q4 2024, Metaplex’s token metadata program launched 12x more fungible tokens than Ethereum and its L2 support networks.

Like much of Solana’s economy, Metaplex can attribute some of its success to pump.fun. While the viral memecoin deployer app dominates mindshare, Metaplex is the underlying standard that powers new token creation.

5.25% of $MPLX Purchased Through Buybacks

Like many Solana ecosystem tokens, Metaplex directs a percentage of protocol revenue towards buybacks that support the value of its native token, $MPLX. Purchased tokens are accumulated in the Metaplex DAO wallet.

Since the inception of Metaplex’s buyback program, the protocol has consistently purchased between 10k-12k $SOL off open markets every month.

However, Metaplex’s buyback mechanism could be on the cusp of slowing down. According to Metaplex Eng Lead, Blockiosaurus, Metaplex has been directing historical revenue to $MPLX buybacks to supplement monthly revenue.

Currently, Metaplex reports 217,089 $SOL in protocol revenue since inception, with 96,859 $SOL already used for buybacks. This leaves an 11,685 $SOL buffer of historical funds for further buybacks.

Topledger data suggests that Metaplex has recorded $1.3M (10,437 $SOL) in revenue throughout March. With 50% (5218.5 $SOL in March) of this revenue going to buybacks, Metaplex is approaching a time when protocol revenue will not be enough to supplement monthly buybacks of 10,000 $SOL.

Resize Your NFTs Before It’s Too Late

In October 2024, Metaplex released a new NFT-resizing tool designed to eliminate bloat and return excess token account rent to users. 

While the tool in itself provides great benefits for both the Solana network and its users, Metaplex faced criticism due to a controversial clause in the tool’s use. 

Solana users were only given six months to resize their NFTs themselves, after which Metaplex would forcibly resize tokens on the holders’ behalf and claim the account rent for the Metaplex DAO.

While Metaplex hasn’t changed its stance on claiming token rent on behalf of users, the protocol has actively encouraged network participants to resize their NFTs before the April 25 deadline. 

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