Solana

Bread

Memecoin

DeFi

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/memecoin-projects-struggle-on-solana" data-wpel-link="internal" rel="noopener noreferrer nofollow">Memecoin Projects Struggle on Solana</a><br></p>
<p style="text-align: justify">The Solana ecosystem’s <a href="https://en.bitcoinhaber.net/bitcoin-and-meme-coins-slide-as-market-braces-for-turbulence" data-wpel-link="internal" rel="noopener noreferrer nofollow">memecoin</a> creation platform, Pump Fun, is facing significant hurdles with the majority of its created cryptocurrencies failing to gain traction. According to Dune Analytics, the success rate of Pump Fun crypto tokens entering the Solana-based DeFi platform Raydium stands at a mere 1.41%. This rate has fluctuated between 1.21% and 2.56% since May, with the highest recorded rate being 2.56% on February 16.</p>
<h2 id="what-s-happening-in-the-memecoin-space">What’s Happening in the Memecoin Space?</h2>
<p style="text-align: justify">Adam Cochran, a partner at Cinneamhain Ventures, disclosed on August 1 that only around 1.4% of the projects listed on a decentralized exchange (DEX) managed to reach $69,000 in value. Cochran highlighted that no new token has truly exceeded the $20 million Fully Diluted Valuation (FDV) level, which signifies the total value of a cryptocurrency if all assets were in circulation. This suggests that the memecoin cycle may have plateaued.</p>
<p style="text-align: justify">Web3 developer and crypto commentator Bread pointed out that of the 1.58 million tokens created, only 22,300 have successfully entered Raydium. Other analysts contend that this low success rate reflects not the memecoin <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">market</a>‘s overall health but rather the ease with which Pump Fun allows for the creation of memecoin projects.</p>
<p style="text-align: justify">Despite the low market launch rate, the successful tokens have contributed significantly in terms of fee revenue. Tokens created on Pump Fun incur a 1% transaction fee until they achieve a threshold market value. Remarkably, Pump Fun’s revenue occasionally outpaced Ethereum’s, drawing approximately $864,000 in a single 24-hour period on July 29, compared to Ethereum’s $550,000 during the same timeframe.</p>
<h2 id="details-on-the-subject">Details on the Subject</h2>
<p style="text-align: justify">Pump Fun has also gained attention from celebrities such as Caitlyn Jenner, Iggy Azalea, and Jason Derulo, who have promoted crypto assets using their likenesses since May. The memecoin market has seen volatility, with CoinMarketCap data showing a 2.67% drop in total market value over the past 24 hours, reaching $44.94 billion. However, trading volume surged by 27.29% to $4.48 billion in the same period. Notably, Book of Memes (BOME) recorded a 14.79% increase over the past week, trading at $0.009 since July 26.</p>
<h2 id="key-takeaways">Key Takeaways</h2>
<ul>
 <li>Pump Fun tokens have a low success rate when entering Raydium, evidenced by only 1.4% achieving notable value.</li>
 <li>No new memecoin on Pump Fun has surpassed a $20 million FDV, indicating a possible market plateau.</li>
 <li>Despite the challenges, successful tokens on Pump Fun contribute significantly to fee revenue, sometimes exceeding Ethereum’s revenue.</li>
</ul>
<p style="text-align: justify">In conclusion, while the Solana ecosystem faces challenges in the memecoin creation landscape, the platform’s ease of use and the substantial fee revenue generated by successful tokens offer a silver lining. Celebrity endorsements and a volatile yet active trading market suggest that memecoins remain a compelling, albeit challenging, segment of the cryptocurrency <a href="https://newslinker.co/category/science/space/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">space</a>.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/memecoin-projects-struggle-on-solana" data-wpel-link="internal" rel="noopener noreferrer nofollow">Memecoin Projects Struggle on Solana</a></h5>

Memecoin Projects Struggle on Solana

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