Solana-based memecoin platform, Pump Fun, has set a new benchmark in monthly contract revenue, reaching an impressive $28.73 million in July. This milestone underscores the soaring interest in memecoin ventures among individual investors.
Why Did Pump Fun Outperform?
The record-breaking revenue comes just two weeks after Pump Fun outperformed Ethereum in 24-hour revenue on July 29, earning $864,000 compared to Ethereum’s $550,000. This surge in revenue is largely driven by the increasing fascination of individual investors in memecoin projects originating from Solana, which has produced some of the most popular memecoins recently. Celebrity endorsements from figures like Caitlyn Jenner, Iggy Azalea, and Rich The Kid have also fueled the memecoin mania on the platform.
What Is Driving Investor Interest?
Despite the volatility in prices, individual investors’ appetite for memecoins continues to grow. This trend is exemplified by Dogwifhat (WIF) becoming the fifth-largest Solana-based cryptocurrency by market capitalization, with Bonk (BONK) following closely. Last week, the price of WIF surged over 20% before retracting by 8%, trading at $1.66. According to CoinMarketCap, the total trading volume for memecoins increased by 3% in the last 24 hours to $3.57 billion, even though the overall market cap dipped by 2.3% to $38.3 billion.
Most memecoin projects launched on Pump Fun do not make it to decentralized exchanges before fading away. Dune Analytics data indicates that the success rate of Pump Fun tokens entering the Solana-based decentralized finance protocol Raydium stands at just 1.41%, fluctuating between 1.21% and 1.41% since May, with an all-time high of 2.56% on February 16. Adam Cochran from Cinneamhain Ventures noted that the graduation rate of assets on Pump Fun, defined as reaching a market cap of $69,000 and being listed on a DEX, remains stagnant at around 1.4%.
Key Takeaways for Investors
– Celebrities launching tokens on Pump Fun are boosting memecoin interest.
– Dogwifhat (WIF) and Bonk (BONK) are notable Solana-based memecoins.
– The total trading volume for memecoins rose by 3% to $3.57 billion recently.
– The success rate of Pump Fun tokens reaching Raydium is low, at 1.41%.
Cochran also pointed out that no new coin has significantly surpassed a $20 million fully diluted valuation (FDV), a measure of the total value of a cryptocurrency if all its assets were in circulation. This highlights the challenges and opportunities within the memecoin market, urging investors to remain vigilant and informed.