In brief
- Pump.fun accounted for 19% of tokens deployed through Solana-based launchpads on Saturday.
- The project’s native token fell to a fresh low on Monday.
- Meme coin traders have shifted toward LetsBonk, which debuted on Solana in April.
Following its massive Initial Coin Offering (ICO), traders on the Solana blockchain are moving away from Pump.fun towards alternative meme coin launchpads, as the platform’s native token’s price struggles.
According to a Dune dashboard created by pseudonymous data scientist Adam Tech, Pump.fun’s share of tokens deployed dropped sharply, from 88% a month prior to 19% on Saturday. This decline has been driven by competitors offering similar functionalities.
LetsBonk, a framework associated with the Solana meme coin BONK and launched in April, saw its share soar to 69% of tokens deployed on Saturday, surpassing Pump.fun. Both platforms allow users with minimal knowledge to create tradable meme coins.
This shift is evident in the performance of their respective top tokens. LetsBonk facilitated tokens reaching significant market caps recently, including a $14.8 million token called DEBT. Pump.fun also launched notable tokens last week, but its newer token INCEL only reached a market cap of $531,000.
Adam Tech suggests the project’s team risks losing its status as a leading platform. “It’s up to them to convince the trenches,” he told Decrypt.
Rising competition is hitting Pump.fun’s revenue, which derives from transaction fees. While its ICO generated over $600 million, its current fee revenue has plummeted, dropping below $200,000 recently compared to previous weeks. The platform previously emphasized its high transaction volumes, but active addresses have decreased significantly.
The platform’s native token has also crashed, down 60% over the last 12 days to $0.002 according to CoinGecko, after a co-founder suggested no immediate airdrop.
Furthermore, influential figures in the Solana ecosystem, like co-founder Anatoly Yakovenko, have dismissed meme coins, calling them “digital slop” lacking intrinsic value, though some traders still seek speculative opportunities.
The platform’s role was highlighted during events like the launch of Donald Trump’s token, which demonstrated Solana’s capabilities, according to asset manager 21Shares’ Adrian Fritz.
Current user engagement displays ongoing activity, with LetBonk and Pump.fun having 62,000 and 77,200 daily active addresses respectively, though these figures were significantly higher during the peak earlier this year.
Negative attention has also emerged in the form of a lawsuit alleging an unlicensed digital casino operating environment.
