Solana's Meme Coin Factory Deteriorating With Cratering Volumes

Transactions on Pump.fun, the leading Solana-based meme coin factory, have taken a nosedive, according to data provided by Dune Analytics.

Pump.fun is a marketplace that makes it possible for users to create their own meme coins and distribute them. The simplicity of the platform makes it appealing for a lot of newcomers, which explains why it gained traction in such a relatively short span of time. In order to create a new token, one simply has to come up with a name for such a token, enter the ticker symbol, an image, and pay an infinitesimal fee.

In late May, Pump.fun appeared at the center of the recent celebrity meme coin craze after such big names as Australian rapper Iggy Azalea jumped on the bandwagon.

Last month, the Solana-based meme coin factory ended up surpassing Ethereum by daily revenue.

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According to the latest data provided by Dune Analytics, there are now 1,727,219 tokens that are deployed on Pump.fun.

Despite declining demand, Pump.fun is still one of the top projects by daily fees, according to DefiLlama. On Saturday, it generated $922,582 worth of fees. This sum puts it in sixth place (behind Lido, Juto, Ethereum, Solana and Tron).

The decline in transaction activity is likely due to the demise of celebrity meme coins. This meme coin sector has been (expectedly) decimated in a short span of time after a brief period of speculative fervor. For instance, Iggy Azalea's MOTHER meme coin is down nearly 80% from its peak. However, the vast majority of other mme coins performed far worse than that, with some of them losing as much as 99% of their value. 

As reported by U.Today, Ethereum co-founder Vitalik Buterin spoke out against the celebrity meme coin craze due to the lack of utility.