Solana chain Meme coin issuance platform Pump.fun's revenue plummeted 30%! Affect SOL price?

2. Token issuance platform Pump.fun launched the “one-click coin issuance function”, which promoted the surge in the number of memecoin in the Solanaecosystem.
3. However, with the crypto market sentiment sluggish, the memecoin sector is showing signs of weakness. The average daily handling fee of
4. Pump.fun dropped significantly from US$870,000 last week to US$605,000 last week, a drop of 30%.
5. The reason for the decline may be due to the continued decline in the market, which has led to a decrease in user risk appetite, especially for memecoin on the Pump.fun platform, which was affected by its highly speculative nature.
6. Fees decline also indicates that token deployment and overall activity on Pump.fun has decreased, or has reached saturation levels.

   

   Pump.fun fee income

Solana activity has dropped significantly

Reports show that Pump.fun accounted for 35% of Solana’s total fee income in the past two months. This ratio does not include fee revenue generated after Pump.fun tokens are listed on a decentralized exchange (DEX) or aggregator.

Note: When the bonding curve of the Pump.fun token reaches 100%, the token liquidity will be deposited into the decentralized trading platform Raydium. Users can trade using Raydium.

The high activity and fee revenue of Pump.fun and its deployed tokens shows clear user engagement and generates considerable economic activity for Solana, despite attracting a user base seeking high-risk, speculative returns.

However, this dependence also has potential risks. The speculative nature of Pump.fun makes it cyclical in nature and prone to rapid fluctuations. If speculative enthusiasm subsides or market conditions are unfavorable, the platform's activity could decrease significantly, resulting in a significant decrease in Solana's transaction fees and overall activity.

The above is the detailed content of Solana chain Meme coin issuance platform Pump.fun's revenue plummeted 30%! Affect SOL price?. For more information, please follow other related articles on the PHP Chinese website!