The Decline in Pump.fun Activity Post-LIBRA Controversy
Following the recent controversy surrounding the LIBRA token, the Solana-based token launchpad Pump.fun has experienced a significant decrease in various key metrics. Here is a breakdown of the recent decline in activity on Pump.fun:
Decrease in New Users
- Between Feb. 7 and Feb. 13, the number of new users onboarded fell by 16.4% to 601,516 from 719,524.
- This marks the first time since late November that the new users’ daily average within a week has dropped below 100,000.
Drop in Token Launches
- The number of tokens deployed weekly has decreased by 26.3%, from 344,607 to 253,955, following the LIBRA incident.
- Despite the decline, Pump.fun has deployed close to 8 million tokens in 13 months as of Feb. 21.
Slump in Fees Collected
- Due to the reduced number of tokens deployed, the launchpad’s fees have also slumped.
- From Feb. 7 to 13, 124,623 SOL were collected in fees, dropping by nearly 32% to 85,196 SOL the following week.
The Impact of the Cooling Memecoin Market
The controversy surrounding LIBRA has had a cooling effect on the memecoin market on Solana. Here are some key points:
- Javier Milei, President of Argentina, endorsed the memecoin LIBRA on Feb. 14, leading to a significant price increase before a crash.
- A report by Nansen revealed that two wallets profited over $10 million through strategic trading of LIBRA.
- The episode raised concerns about insider trading in memecoin markets and Solana’s overall trustworthiness.
As a result of these events, the memecoin sector has seen a 13.4% decline since Feb. 14, marking one of the largest drawdowns in altcoin sectors according to Artemis’ data.
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