Solana memecoins crash as Pump.fun activity drops

Solana memecoins are among the cryptocurrencies that have suffered the most losses over the past week. According to CoinGecko, they have lost an average of 21.7% of their market value over the past seven days.

Much of this decline was due to token launchpad Pump.fun, which fell out of favor after suffering a major outage. By the end of the week, Pump.fun was responsible for 5,388 new tokens created on Solana, according to data from Dune.

This number may seem high, but just three weeks ago the protocol reached its peak, deploying 20,465 tokens. This means that demand for Pump.fun usage has fallen by approximately 75%.

As Pump.fun’s stats have fallen, so have the prices of some of the protocol’s key tokens. Names like Billy (BILLY), which is down 36.9% on the week, and Smoking Chicken Fish (SCF), which is down 37.1%, have served to deepen the decline in demand for Solana’s memecoins.

The SOL token itself was not immune to this movement and experienced a 12.7% loss over the week.

Solana Tokens in Freefall

In addition to the newly minted tokens, the network’s top memecoins also saw losses. Memecoins such as Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT) dropped 24%, 17.9%, and 23.7% on the week, respectively.

Other big losers include Neiro-related Ginnan The Cat (GINNAN), which plunged 58.6% last week, meme Roaring Kitty Lock In (LOCKIN), which fell 39.6%, and Mumu The Bull (MUMU), which fell 33.6%.

None of these tokens appeared on Pump.fun, the drop in demand for the platform played an important role, as it cooled demand for the ecosystem.

However, some tokens created on Pump.fun have managed to go against this trend, such as Fwog (FWOG), for example, which has risen 34.6% in the last seven days. Another token that has risen in value is R/SNOOFI, a dog memecoin inspired by the subreddit “r/snoofi”, whose price has risen 42% in the last week.

Pump.fun’s total revenue surpassed $100 million over the weekend, providing positive news amid falling demand for its use.

Tron Competition

Pump.fun began to fall into disuse after the creation of another memecoin platform, SunPump, a protocol created by Justin Sun on the Tron network. This launch caused several traders to migrate from Solana to Tron.

Two weeks ago, SunPump surpassed Pump.fun in daily meme coins created, a sign that it had stolen traders’ attention. Additionally, the price of TRX, the token that powers the Tron network, closed August up 25% – the only cryptocurrency in the top 10 to gain value during the month. In contrast, SOL saw the third-biggest decline among the top 10 cryptocurrencies.

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