Solana’s leading memecoin platform Pump.fun saw revenue crash by 80% in July. Are memecoins going out of popularity?
Solana-based memecoin platform Pump.fun has seen a major slowdown. In July alone, it recorded its lowest monthly revenue of the year after earning just $24.96 million. This marks an 80% drop from its high of over $130 million in January, according to DefiLlama.
This decline in revenue shows that the memecoin market may have cooled down after its wild rally earlier in the year.
Pump.fun Revenue Hits Lowest Point Of The Year
Pump.fun started the year strong. In January, the platform pulled in more than $130 million in revenue. But the months that followed told a different story.
Revenue dropped to $90 million in February, and then tumbled to $37 million in March. For the next few months, it hovered around $40 million before finally slipping below that level in July.
This steady decline shows that activity on the platform is shrinking. As hype around memecoins fades, so too does the excitement around launching new tokens on Pump.fun.
Memecoin Market Cap Drops $20 Billion
The drop in Pump.fun revenue is tied to the more general slowdown in the memecoin market. In July, memecoins reached a high of $85 billion in total market cap, with a record $17.22 billion in daily trading volume.
But the rally didn’t last. By early August, the memecoin market cap had fallen to $65 billion in a 23.5% decline. Trading volume suffered an even worse fall, after crashing 67% to $5.59 billion according to CoinMarketCap.
Solana, the home to many of the most active memecoin platforms, felt the effects even more strongly, with fewer people trading and fewer tokens being launched.
On August 2, only 34,040 Solana Program Library (SPL) tokens were minted. That’s the lowest daily count recorded in the past three months, according to Solscan.
This shows a clear drop in speculative activity. New projects aren’t popping up as frequently as they were just a few months ago.
This said, the memecoin market seems to be entering a cooling phase after an unsustainable period of growth.
Is Pump.fun and Other Solana Memecoin Platforms Losing Steam?
Daily trading activity is also on the decline.
On July 9, Pump.fun saw 346,000 traders and $348 million in trading volume, which was a daily record. However, by August 5, the numbers had dropped to 129,000 traders and $150 million in volume. For context, this is a 62% drop in users and a 56% decline in volume.
Another reason why the memecoin slowdown may be more general than localized, is that LetsBonk, one of Pump.fun’s biggest competitors, is also showing signs of a slowdown.
On July 9, LetsBonk recorded 208,000 daily traders and $503 million in volume. As of early August, its trader count had increased by 25% to 260,000, but its volume had dropped to $453 million. This, again, is a 10% decline.
The data indicates that users are still participating, but with smaller trade sizes.
