Solana, mirroring the performance of Bitcoin and its main competitors, BNB and Ethereum, is firm at press time. Although gains have not been sharp, SOL bulls are shaking off weaknesses. Solana is, most importantly, recovering from the late July slump that saw the coin drop to as low as $130 in early August.
Meme Coin Activity Picking Up Steam On Pump.fun
The drawdown could be partially due to the general cool-off across the crypto scene and the drop in meme coin activity. As of September 27, however, it appears that momentum is picking up. One on-chain analyst, pointing to developments in Pump.fun, a meme coin launchpad on Solana, said interest is rising.
Over the last 24 hours, over 11,800 meme coins have been deployed on the meme coin launchpad. However, of the thousands launched, only 193 tokens eventually got listed on Raydium, the decentralized exchange on Solana. This means that despite thousands of meme coins launching, a big majority, over 95%, fail to achieve the $69,000 market cap required for direct listing.
Altogether, over two million meme coins have been created on the modern blockchain through Pump.fun. At this pace, the analyst observes that over 51% of all tokens on Solana are meme coins launching from the meme coin launchpad.
Solana Might Benefit From The Resurgence
According to Coingecko, all meme coins from Pump.fun command a market cap of over $1 billion. In the past 24 hours alone, they generated trading volume exceeding $307 million. The most valuable of them all is Moo Deng, which has a market cap of over $182 million. MICHI and MOTHER are other liquid Pump.fun meme coins.
Overall, as the Pump.fun ecosystem picks up momentum, and more meme coins are minted, SOL prices might benefit. The last bull cycle that drove SOL prices above $200 was primarily due to the surging demand, mainly due to meme coin activity.
In that leg up, BONK, WIF, and other Solana meme coins sharply rallied and registered hundreds of millions in market cap. On September 27, WIF is the fourth largest meme coin, only tracking Dogecoin, Shiba Inu, and Pepe.
Still, there are concerns. Early this month, the Pump.fun address began unloading SOL. On September 12, Lookonchain revealed that they sold 9,940 SOL worth around $1.33 million.
By then, they had offloaded over 270,000 SOL. It is unclear whether the meme coin launchpad will resume selling. At press time, Dune Analytics data shows the platform has generated over $111 million in revenue.
Feature image from Canva, chart from TradingView
