The Solana meme coin ecosystem has been one of the main topics of conversation in this boom as crypto investors continue to bet on tokens launched via meme coin generator Pump.fun. Solana traders may think otherwise, however, as data from on-chain analytics platform Dune shows a waning interest in these meme coins.

Pump.fun sees huge decline

Data from Dune Analytics shows a huge drop in the number of weekly new addresses on Pump.funwhich indicates a decline in interest in meme coins generated on the platform. During the week ending August 12, Pump.fun registered 33,333 new addresses on its platform, a significant drop from the previous week, when it saw 212,699 new addresses.

A bigger picture shows that the number of new weekly addresses on the platform has decreased since the week ending June 17, when it peaked at 349,032 new weekly addresses. This decrease can be attributed for various reasonsFirst, the meme coin generator has been heavily criticized for making it easier for scammers to carry out pump-and-dump schemes.

Anyone can stake a meme coin via Pump.fun for as little as $2, a move that has undoubtedly led to a surge in carpet pullswhere the token developers dump all their holdings to traders and suck all the liquidity out of the token. Furthermore, the ease of creating a meme coin via Pump.fun has made the Solana meme coin ecosystem too saturated.

This has put meme coin trading on the Solana Network less profitable and too much of a gamble, which explains why traders are losing interest in Pump.fun and, by extension, Solana meme coins. Crypto enthusiast Adam recently highlighted how Pump.fun has become a “slaughterhouse” for meme coin swords.

In an X (formerly Twitter) afterAdam noted that on August 10, 16,357 tokens were launched on Pump.fun, while only 175 came to market. Raydium (a decentralized exchange). That means that only about 0.12% of the meme coins launched on Pump that day made it to Raydium, where these tokens enjoy greater visibility and can reach new heights. From a trading perspective, there is only a 0.12% chance of making life-changing profits from coins launched on the platform.

Pump.fun needs to do better

Members of the crypto community have continued with shouting for Pump.fun to implement mechanisms that can help contain the countless number of carpets being launched on the platform. One of these is the potential increase in the fee required to launch a token on the meme coin generatorMembers of the crypto community believe this could deter developers whose sole purpose is to pump and dump arrangement.

However, calls for a higher token creation fee have been ignored. Instead, Pump.fun recently announced that minters will receive 0.5 SOL when their coin completes the bonding curve and transitions into Raydium.

It is worth mentioning that the meme coin launchpad continues to generate millions of dollars in revenue even at the expense of meme coin traders. Facts from Dune Analytics shows that Pump.fun has a total revenue of $90 million. In May, former employee Jarett Dunn named how the platform “has been unintentionally hurting people for a long time,” as he siphoned off nearly $2 million from Pump.fun and distributed it to random wallet addresses.

Main image created with Dall.E, chart from Tradingview.com