Reflecting the performance of Bitcoin and its main competitors, BNB and Ethereum, Solana is holding steady at the time of writing. While gains haven’t been sharp, SOL bulls are shaking off their weaknesses. Most importantly, Solana is recovering from the late July slump that saw the coin fall to $130 in early August.
Meme coin activity Pumping up steam on Pump.fun
The decline could be partly due to the general cooling in the crypto scene and the decline in meme coin activity. However, as of September 27, momentum appears to be picking up. One on-chain analyst, pointing to developments in Pump.fun, a meme coin launch pad on Solana, said interest is increasing.
More than 11,800 meme coins have been deployed on the meme coin launch pad in the past 24 hours. However, of the thousands of tokens launched, only 193 tokens were ultimately listed Raydiumthe decentralized exchange on Solana. This means that despite the launch of thousands of meme coins, a large majority, over 95%, fail to reach the $69,000 market cap required for direct listing.
In total, more than two million meme coins have been created on the modern blockchain through Pump.fun. At this rate, the analyst finds that more than 51% of all tokens on Solana are meme coins launched from the meme coin launch pad.
Solana could benefit from the resurgence
According to Coingecko, these are all meme coins from Pump.fun command a market capitalization of over $1 billion. In the last 24 hours alone, they generated a trading volume of over $307 million. The most valuable of them all is Moo Deng, with a market cap of over $182 million. MICHI and MOTHER are other liquid Pump.fun meme coins.
Overall, SOL prices could benefit as the Pump.fun ecosystem gains momentum and more meme coins are minted. The last bull cycle that pushed SOL prices above $200 was mainly due to rising demand, mainly due to meme coin activity.
At that stage, BONK, WIF and other Solana meme coins rose sharply and registered hundreds of millions in market capitalization. As of September 27, WIF is the fourth largest meme coin, behind only Dogecoin, Shiba Inu and Pepe.
Yet there are concerns. At the beginning of this month, the Pump.fun address started unloading SOL. On September 12, Lookonchain revealed that they sold 9,940 SOL worth approximately $1.33 million.
By then they had unloaded over 270,000 SOL. It’s unclear whether the meme coin launch pad will resume sales. At the time of writing: Dune Analytics data shows the platform has generated more than $111 million in revenue.
Feature image from Canva, chart from TradingView