Solana Might Benefit From The Resurgence of Meme Coin Activity on Pump.fun

Solana, mirroring the performance of Bitcoin and its main competitors, BNB and Ethereum, is firm at press time. Although gains have not been sharp

Solana (SOL) is trading sideways on Wednesday. The coin is mirroring the performance of Bitcoin (BTC) and its main competitors, BNB and Ethereum (ETH), which are also seeing minimal gains.

However, SOL bulls are shaking off recent weaknesses, especially the late July slump that saw the coin drop to as low as $130 early in August. At press time, the coin is changing hands at $34.3.

Solana might benefit from the rising meme coin activity, especially on Pump.fun, a meme coin launchpad on the chain. According to one on-chain analyst, over 11,800 meme coins were deployed on Pump.fun in the last 24 hours.

Of the thousands of meme coins launched on the platform, only 193 eventually got listed on Raydium, the decentralized exchange on Solana. This means that despite the thousands of meme coins launching, a vast majority (over 95%) fail to achieve the $69,000 market cap required for direct listing on the DEX.

Altogether, over 2,000,000 meme coins have been created on the modern blockchain through Pump.fun. At this pace, the analyst observes that over 51% of all tokens on Solana are meme coins launching from the meme coin launchpad.

Rising Pump.fun activity to benefit Solana (SOL) prices?

According to data from Coingecko, all meme coins from Pump.fun command a market cap of over $1 billion. In the past 24 hours alone, they generated trading volume exceeding $307 million. The most valuable of them all is Moo Deng, which has a market cap of over $182 million. Other liquid Pump.fun meme coins include MICHI and MOTHER.

As the Pump.fun ecosystem picks up momentum, and more meme coins are minted, SOL prices might benefit from the activity. The last bull cycle that drove SOL prices above $200 was primarily due to the surging demand, mainly thanks to meme coin activity.

In that leg up, BONK, WIF, and other Solana meme coins sharply rallied and registered hundreds of millions in market cap. On September 27, WIF is the fourth largest meme coin, only trailing Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe.

However, there are concerns. Earlier this month, the Pump.fun address began selling SOL. On September 12, Lookonchain revealed that they sold 9,940 SOL worth around $1.33 million.

By then, they had offloaded over 270,000 SOL. It is unclear whether the meme coin launchpad will resume selling. At press time, Dune Analytics data shows the platform has generated over $111 million in revenue.