Pump.fun Developers Sell $200M SOL as Revenue Hits $278M Milestone

The Solana (SOL) network has become one of the top Layer 1 blockchains, largely thanks to the explosive rise of memecoins over the past year. With a market cap surpassing $20 billion and an average daily trading volume of over $8 billion, Solana is now home to popular tokens like Dogwifhat (WIF) and Bonk (BONK).

What’s the secret behind the growth? Let’s take a closer look.

Key Metrics for Pumpfun Protocol

The rapid growth of Solana’s memecoin market is closely tied to the Pumpfun launchpad, which has been vital in launching and supporting many of the top tokens in the ecosystem.

According to market data from Dune Analytics, Pumpfun Protocol has launched around 40,000 tokens in the last 24 hours alone. However, only 521 of these were created in the past 24 hours, bringing the total number of tokens launched via Pumpfun to more than 4.2 million.

Pumpfun Protocol reported a net revenue of $3.1 million on Tuesday, bringing its total revenue to over $278 million. However, the protocol’s revenue has been declining recently, partly due to the controversy surrounding the disabling of its live-stream feature.

SOL Deposits Raise Questions About Developer Sales

On-chain data from Lookonchain shows that Pumpfun’s core developers have been transferring large amounts of SOL to the Kraken exchange. In the last week, they deposited 100,000 SOL units worth about $23.45 million, bringing their total deposits to nearly 1 million SOL (valued at $200 million).

Of this, 264,373 SOL have been sold for 41.64 million USDC, raising concerns about potential further sell-offs.

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Market Impact

The growth of Solana’s memecoin market has led to a significant increase in network activity. With over $9 billion in total value locked (TVL) and more than $4.7 billion in stablecoin market cap, Solana’s ecosystem is thriving. In the last 24 hours alone, the network saw over 5.7 million active addresses, compared to Ethereum’s 436,000.

This surge in activity is attracting institutional investors. Grayscale Investments recently filed with the U.S. SEC to launch a Solana ETF, signaling growing interest from professional investors.

From a technical perspective, Solana’s price appears to be in a strong position to experience significant growth in the coming months, despite the ongoing sales by Pumpfun developers.

The network’s strong activity and rising institutional interest suggest that Solana could continue to perform well in the market.

FAQs

With Solana’s memecoin boom and rising institutional interest, the blockchain is clearly carving out its place as a powerhouse in the crypto world.