2025-02-13
The trading volume of graduated pump.fun
tokens on Solana has dropped significantly, averaging just $560 million per day
over the latter half of last week.
This marks the lowest daily trading
average since Christmas 2024 and represents an 82% decline from the record high
of $3.13 billion recorded three weeks ago.
The slowdown in trading activity is
also reflected in the declining pump.fun token graduations.
Last week, only 1.04% of tokens on the
platform graduated to Raydium, a further drop from 1.54% and 1.59%
in the previous two weeks.
The cooling trend in Solana’s on-chain
trading extends beyond pump.fun tokens.
The daily average tips paid to Jito
validators, a key indicator of transaction activity, fell to 23,800 SOL (~$4.8
million) last week.
Compared to 42,000 SOL (~$9.9 million)
and 68,500 SOL (~$17.5 million) in the prior two weeks.
This suggests reduced trading activity
as traders typically pay these validators to accelerate transactions.
The Solana memecoin frenzy appears to
be following a “euthanasia coaster” pattern, initial euphoric peaks followed by
progressively smaller surges.
The trend began with the $TRUMP
memecoin, which peaked at a fully diluted valuation (FDV) of $75 billion.
Subsequent memecoin launches, however,
have seen diminishing market caps:
The latest memecoin, $JAILSTOOL, was
launched by Barstool Sports founder Dave Portnoy, but has already peaked,
continuing the downward trend in market caps for new launches.
With trading volumes on the decline and
memecoin valuations steadily shrinking, the once-red-hot Solana trenches seem
to be cooling down rapidly. Whether this is a temporary lull or the beginning
of a broader shift remains to be seen.
