The Solana (SOL) network has emerged as a leading layer one (L1) blockchain, largely driven by the proliferation of memecoins introduced in the past year. The memecoin market cap on Solana has surged past $20 billion, with a daily trading volume exceeding $8 billion. Key players in this space include dogwifhat (WIF) and Bonk (BONK), among others.
A significant catalyst for the growth of Solana’s memecoin market has been the Pumpfun launchpad. Many of the top meme coins on the Solana network were launched and nurtured through the Pumpfun launchpad, contributing to the sector’s rapid expansion.
Key Metrics for Pumpfun Protocol
Market data from Dune analytics reveals that over 40,000 tokens were launched on Pumpfun Protocol in the last 24 hours, with 521 tokens actually generated. This brings the total number of tokens launched on Pumpfun to over 4.2 million. On Tuesday alone, Pumpfun Protocol generated approximately $3.1 million in revenue, pushing the total revenue past $278 million. However, recent controversies surrounding the disabling of the live stream feature have led to a decline in revenue over the past week.
Core Developers on a Selling Spree
On-chain data analysis by Lookonchain shows that Pumpfun core developers have deposited 100k SOL units, valued at around $23.45 million, on the Kraken exchange. In total, the developers have deposited nearly 1 million SOL units, worth $200 million, and sold 264,373 SOL for $41.64 million in USDC.
Market Impact
The surge in memecoins within the Solana ecosystem has significantly boosted the network’s on-chain activity. Solana boasts a total value locked (TVL) of over $9 billion and a stablecoin market cap exceeding $4.7 billion. In the past 24 hours, there were over 5.7 million active addresses on the Solana network, far surpassing Ethereum’s 436k.
This increased activity has attracted institutional investors looking to diversify their crypto portfolios. For example, Grayscale Investments recently filed for a Solana ETF spot with the US SEC, indicating growing demand from investors.
From a technical analysis perspective, Solana’s price appears poised for a potential parabolic rally in the coming months, despite ongoing sales by Pumpfun developers.
As the Solana network continues to evolve and expand its memecoin market, it remains a key player in the blockchain space, attracting both retail and institutional investors alike.