Pump.fun Records Lowest Number of Launches in 151 Days - Is Tron Really to Blame?

Once considered crypto’s most valuable app in terms of revenue generation, no-code token deployer pump.fun is rapidly losing traction. 

Plagued with oversaturation and the prospect of greener pastures elsewhere, the trenches of Solana’s meme economy appear to have emptied.

Average Daily pump.fun Launches Down 47% in Two Weeks

One of Solana’s most popular applications, pump.fun, has enjoyed incredible success in 2024. The platform has witnessed explosive growth, generating $108M in revenue and facilitating the launch of over 1.88M tokens on the network.

However, pump.fun’s time in the limelight appears to be coming to an end. Since recording over 20,000 launches during the Elon Musk/Donald Trump 𝕏 Space, pump.fun activity has languished.

Based on Dune Analytics data, pump.fun averaged 15,217 daily launches between August 5-11. Fast-forward to last week, ending August 25, the protocol averaged a mere 8,003 daily launches, representing 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 significant decline has resulted in plummeting revenues for the platform. In the week ending August 11, pump.fun generated an average of 5,880 SOL per day. Comparatively, the platform struggled last week, only managing a daily average of 3,539 SOL. This represents a 39.98% drop in revenue production in just 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 pump.fun activity to unprecedented levels, helping the app generate over 35k 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.

Memecoin Traders Try Their Luck Elsewhere

With diminishing trade volumes and reduced launches on Solana, traders are shifting their attention towards other areas of the crypto industry.

The Tron Network has been one of the biggest benefactors of pump.fun’s decline. In an attempt to draw liquidity and attention to Tron, CEO Justin Sun recently launched a pump.fun fork, sun.pump.

While touted as a pump.fun competitor, sun.pump still falls well short of pump.fun’s activity. Since launching on August 9th, sun.pump has facilitated the launch of over 46k tokens, 77% less than pump.fun’s 193k launches in the same time frame.

pump.fun’s diminishing activity is likely to alter market dynamics within the ecosystem. With attention shifting away from memecoin launches, network participants may witness liquidity flow back to established projects and applications.

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