In an exciting development for the meme cryptocurrency market, the Solana-based platform Pump.fun achieved a record-breaking $28.7 million in monthly agreement income in July 2021. The impressive feat highlights a surge in retail interest in memecoins, digital currencies inspired by internet memes, that are created and traded on the platform.
Among the factors contributing to Pump.fun’s success is the attention gripping memecoins on its native Solana blockchain. Popular meme coins such as WIF and BONK owe their origin to Solana, further attracting interest in the platform. Notably, celebrity-driven memecoin launches are also adding to the craze, with well-known personalities such as Caitlyn Jenner and Iggy Azalea launching their tokens on Pump.fun.
However, memecoin influence goes beyond the platform. The appetite for such tokens continues unabated despite price volatility. For instance, Dogwifhat (WIF), a dog-themed memecoin, has escalated to be the fifth-largest Solana-based cryptocurrency by market capitalization. Its price experienced a 20% surge over the past week but retraced 8% within 24hours.
Despite the enthusiasm surrounding the memecoin market, it should be noted that not all memecoins launched on Pump.fun make it to the Solana’s decentralized finance protocol, Raydium, a chief decentralized exchange (DEX). Data from Dune Analytics shows the success rate of tokens achieving this to be a meager 1.41%. However, these numbers barely deter the interest of ardent investors who continue to actively participate in the memecoin market.