As a seasoned crypto investor who has weathered numerous market cycles and witnessed the rise and fall of various projects, I find myself observing Pump.fun with a mix of intrigue and caution. The platform’s meteoric rise to popularity and its rapid generation of $100 million in revenue is undeniably impressive. However, the recent selling of Solana tokens, coupled with shrinking volume and activity, raises concerns about its sustainability amidst growing competition.
Despite a general market-wide selloff causing prices to drop, Memecoin launchpad Pump.fun managed to sell an increased amount of Solana tokens.
At Pump.fun, transactions are being made as the value of Solana (SOL) experienced a downturn in tandem with the general market, where Bitcoin (BTC) fell back to around $58,000.
Pump.fun sells 10.3k SOL
Three days ago, I discovered from Lookonchain’s disclosure that the Pump.fun Fee Account had parted with 10,300 Solana (SOL) tokens. They managed to offload these tokens at an average price of around $134.46 each, which resulted in a gross income of approximately $1.38 million. With this latest sale, Pump.fun’s total SOL token sales now stand at about 264,373 units, equating to a staggering $41.64 million when averaged at roughly $157.5 per token.
40 minutes ago, The Fee Account sold a total of $41.64 million in SOL (approximately 264,373 units), with the average selling price being $157.5!— Lookonchain (@lookonchain) September 3, 2024
The latest on-chain information indicates that the account belonging to Pump.fun is currently holding approximately 303,852 Solana (SOL) tokens, which equates to more than $39.6 million in value, within their Fee Account.
Additionally, this venture boasts a collection of 41 diverse cryptocurrencies, amounting to approximately $45.2 million. Combined with its existing assets, this brings the total value to over $84.8 million. This substantial sum represents a notable income stream for a crypto company that swiftly reached the milestone of generating $100 million in revenue, making it one of the fastest in the industry to do so.
Activity shrinks amid competition
In January 2024, Pump.fun was launched and swiftly became the leading platform for new meme coins. Its success caused Solana to overtake Ethereum (ETH) in terms of meme coin activity, with tokens like Mother Iggy seeing massive growth at launch. Notably, Pump.fun reached a revenue milestone of $30 million by June this year.
Despite the emergence of SunPump, a meme coin launchpad on the Tron network (TRX), there’s been a notable decrease in trading volume and activity. Many tokens have failed to generate interest, and those that did manage to attract substantial volumes have since experienced a sharp decline due to the general sell-off affecting memecoins.
On the platform, only a small percentage of users have managed to earn substantial profits, as less than 1% of wallets have recorded earnings of $1,000 or more.
Read More
Sorry. No data so far.
2024-09-03 18:53