Solana (SOL), often compared to Bitcoin and major competitors like BNB and Ethereum, is showing a firm stance at the time of writing. Although the gains have not been particularly sharp, SOL bulls are gradually overcoming recent weaknesses. Most notably, Solana is recovering from a late July slump that saw the coin’s value plummet to as low as $130 in early August.
Meme Coin Activity Picking Up Steam On Pump.fun
The recent drawdown in Solana’s value could partially be attributed to a general cool-off across the cryptocurrency scene and a decline in meme coin activity. However, as of September 27, momentum appears to be picking up. One on-chain analyst pointed to developments on Pump.fun, a meme coin launchpad on Solana, indicating that interest in meme coins is on the rise.
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In the past 24 hours alone, over 11,800 meme coins have been deployed on Pump.fun. Despite this high number, only 193 tokens have successfully listed on Raydium, the decentralized exchange on Solana. This indicates that the majority of meme coins, over 95%, fail to meet the $69,000 market cap required for direct listing on the exchange.
Overall, more than two million meme coins have been created on Solana through Pump.fun. The analyst noted that over 51% of all tokens on Solana originate from this meme coin launchpad, demonstrating its significant impact on the ecosystem.
Solana Might Benefit From The Resurgence
According to Coingecko, all meme coins launched from Pump.fun collectively command a market cap exceeding $1 billion. In the past 24 hours, these meme coins have generated a trading volume of over $307 million. The most valuable among them is Moo Deng, boasting a market cap of over $182 million. MICHI and MOTHER are other notable meme coins from Pump.fun.
With the Pump.fun ecosystem gaining momentum and more meme coins being minted, Solana’s prices might benefit from this resurgence. The last bull cycle that pushed SOL prices above $200 was significantly driven by the surge in meme coin activity. During that period, meme coins like BONK and WIF experienced substantial rallies, achieving market caps in the hundreds of millions.
As of September 27, WIF is the fourth-largest meme coin, following Dogecoin, Shiba Inu, and Pepe. Despite the positive trends, there are some concerns. Earlier this month, the Pump.fun address began selling SOL. On September 12, Lookonchain revealed that they had sold 9,940 SOL, worth approximately $1.33 million.
By that time, they had offloaded over 270,000 SOL. It remains unclear whether the meme coin launchpad will continue selling SOL. According to Dune Analytics, the platform has generated over $111 million in revenue at the time of writing.
Conclusion
In conclusion, Solana is showing resilience as it recovers from its recent slump, and the rising activity in the meme coin sector on Pump.fun could potentially bolster its prices. While there are some concerns regarding the selling of SOL by the Pump.fun address, the overall market sentiment appears to be positive. As meme coins continue to gain traction, Solana’s ecosystem might see further growth and increased investor interest.
