The Solana public chain, with its low fees and smooth transaction experience, provides an ideal breeding ground for the birth and development of meme coins, and the Solana-based meme coin issuance platform Pump.fun, which allows users to issue coins for free, has sparked an unprecedented nationwide coin issuance speculation frenzy in this market cycle.
Pump.fun Trading Frenzy Subsides
However, with the recent significant cryptocurrency market crash, on-chain speculative activity appears to be declining significantly. According to GMGN data, only 2 tokens with a market cap of over $1 million were listed on Raydium from Pump.fun in the past 24 hours.
The Block data shows that the daily trading volume of meme coins listed on Raydium from Pump.fun has dropped to $136 million as of the 25th, a new low since September last year, and a 95% decrease from the peak of $3.13 billion on the 19th of last month.
In addition, the graduation rate of Pump.fun tokens has also declined significantly, with only 0.73% of Pump.fun tokens successfully launched to Raydium on the 25th, compared to 1.1% and 1.5% in the previous two weeks.
At the same time, the average daily tips paid to Jito validators on Solana have dropped to 12,580 SOL, a significant drop from the peak of 2.346 million SOL last month, indicating a significant decrease in on-chain transaction activity, as users usually pay tips to Jito validators to accelerate transactions, and the data decline means that transaction activity is weakening.
Pump.fun Seeks Self-Rescue
The Block recently analyzed that the above situation indicates that the Solana meme coin market seems to be experiencing a "euthanasia roller coaster", a metaphorical concept that initially experiences a significant market, but then the peak of each market wave gradually decreases.
The beginning of this trend was the $TRUMP meme coin last month, whose FDV once reached $75 billion, but subsequently the market caps of other popular meme coins have had lower ceilings, including $MELANIA, $VINE, $jellyjelly, and $JAILSTOOL.
The significant decline in business has forced Pump.fun to explore more products, and Pump.fun has recently been discovered to be allegedly launching a token swap and liquidity pool function, with the community speculating that Pump.fun may launch its own token swap platform to completely abandon Raydium and obtain more transaction fees.
DEXes like Raydium are currently carrying a large amount of liquidity from Pump.fun, and if the above speculation is true, it will undoubtedly deal a heavy blow to the DEXes on Solana.
