Pump.fun Developers Sell $200M SOL Amid $278M Revenue Milestone

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The Solana (SOL) network has grown to a top-tier layer one (L1) blockchain majorly bolstered by the memecoins launched in the past year. Solana’s memecoin market cap has scaled to over $20 billion and a daily average traded volume of over $8 billion, led by dogwifhat (WIF), and Bonk (BONK), among others.

The notable rise of Solana’s memecoin industry has heavily been impacted by the Pumpfun launchpad. Moreover, the majority of the top meme coins on the Solana network were launched and incubated through the Pumpfun launchpad.

Key Metrics for Pumpfun Protocol

According to market data provided by Dune analytics, around 40,206 tokens were launched on Pumpfun Protocol in the past 24 hours. However, only 521 tokens were generated in the past 24 hours, thus raising the total tokens launched on Pumpfun to over 4.2 million.

On Tuesday, Pumpfun Protocol registered a net revenue of about $3.1 million, thus bringing the total revenue to over $278 million. 

The protocol’s revenue has, however, been on the decline in the past week following the disabling of the live stream feature, which was marred with huge controversy.

Core Developers on a Selling Spree

According to on-chain data analysis from Lookonchain, Pumpfun core developers deposited 100k SOL units, worth about $23.45 million, to Kraken exchange. So far, Pumpfun developers have deposited 998,869 $SOL units, worth $200 million to Kraken exchange and sold 264,373 SOL for 41.64M $USDC.

Market Impact

The notable rise of memecoins on the Solana ecosystem has resulted in a major increase in the network’s on-chain activity. The Solana network has over $9 billion in TVL and more than $4.7 billion in stablecoins market cap. In the past 24 hours, the Solana network registered more than 5.7 million active addresses, compared to Ethereum’s 436k.

Consequently, more institutional investors have been buying Solana to diversify their respective crypto portfolios. For instance, Grayscale Investments filed for a spot in Solana ETF with the US SEC on Tuesday, signaling the rising demand from investors.

From a technical analysis standpoint, Solana’s price is well positioned to rally parabolically in the coming months, despite the continued sales by Pumpfun developers.