- Only 68 tokens graduated today, compared to 215 the previous day
- Daily launches have dropped by over 51% in the past two weeks
- Graduation rate has fallen to its lowest point since May 2024
New data from Whale Insider indicates quite the decline in the number of tokens graduating from the cryptocurrency launchpad Pump.fun, with only 68 tokens graduating today compared to 215 the previous day.
This latest report points to a downturn in token launches and graduations on Pump.fun. Daily launches have fallen by over 51% in the past two weeks, from approximately 54k on February 11 to roughly 26k on February 25.
In line with this, the graduation rate has fallen to its lowest point since May 2024, with less than 1% of tokens launched on February 25 successfully graduating.
Revenue and User Activity Could Suffer
This isn’t good news for Pump.fun, as the drop in graduations could impact its revenue and overall activity.
If fewer token launches succeed, it may cause decreased user engagement and transaction volumes. This could push the platform to change its strategies or add new features to boost participation.
It’s hard to say for certain why this is happening, but the reduced graduation rate may reflect a cautious approach from investors amid current market conditions. Factors such as increased volatility, regulatory uncertainties, or a shift in investment focus are likely the main contributors to this trend.
Pump.fun: Instant Token Launchpad Explained
Launched last year in January, Pump.fun is a cryptocurrency launchpad on the Solana blockchain that enables users to create and trade tokens immediately. Tokens on Pump.fun follow a discrete bonding curve pricing model, where prices increase at set market cap milestones.
For a token to graduate, it must reach a set market cap (roughly 86 SOL), signifying sufficient investor interest and liquidity, as it then becomes listed on decentralized exchanges like Raydium. Graduation often leads to increased exposure and trading activity for the token.
Too Many Tokens or LIBRA Fiasco Blame?
Some users attribute the decline to an overabundance of tokens. Since launch, Pump.fun has facilitated the creation of nearly 8 million tokens, and some of those were inadequate to begin with.
In addition, the slump probably has to do with the fiasco involving the LIBRA token and its subsequent collapse. This incident has made investors and users more wary, contributing to lesser activity on platforms like Pump.fun.
Whatever the reason, Pump.fun has seen better days and we will have to see if it overcomes the current difficulties.
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