Bitrabo Editorial
The era of meme coins within the Solana ecosystem has been a prominent theme in the current bullish market, with crypto enthusiasts showing interest in tokens launched through the meme coin generator Pump.fun. However, recent data from the on-chain analytics platform Dune indicates a fading enthusiasm for these meme coins.
Pump.fun Witnesses Significant Decline
Statistics from Dune Analytics exhibit a substantial decrease in the number of new addresses joining Pump.fun weekly, signaling a decrease in interest in meme coins produced on the platform. In the week ending on August 12, Pump.fun saw 33,333 new addresses, a stark contrast to the previous week’s 212,699 new addresses.
Zooming out reveals a continuous decline in weekly new addresses on the platform since the peak on June 17th, hitting 349,032 new weekly addresses. This decline can be attributed to several factors, including criticism for facilitating pump-and-dump schemes due to the ease of deploying a meme coin through Pump.fun for as little as $2.
This accessibility has led to an influx of rug pulls where token developers swiftly sell off their holdings, depleting the token’s liquidity. Consequently, the Solana meme coin market has become oversaturated, diminishing its profitability and turning it into a risky venture, prompting traders to lose interest in Pump.fun and Solana meme coins. Crypto enthusiasts have even likened Pump.fun to a “slaughterhouse” for meme coin investors.
One crypto enthusiast highlighted on X (formerly Twitter) how out of 16,357 tokens launched on Pump.fun on August 10, only 175 reached Raydium, a decentralized exchange. This underscores the slim chances of achieving significant gains from coins launched on Pump.fun.
Improvements Needed for Pump.fun
The crypto community has been advocating for Pump.fun to implement measures to deter the proliferation of rug pulls on the platform, such as increasing the token creation fee. Despite these suggestions, Pump.fun recently disclosed that coin creators would receive 0.5 SOL when their coin advances to Raydium.
Although Pump.fun has amassed substantial revenue, reaching $90 million, concerns have been raised about its impact on meme coin traders. Former employee Jarett Dunn disclosed how he redirected nearly $2 million from Pump.fun to various wallet addresses, emphasizing the platform’s inadvertent harm to individuals.