Activity on memecoin launchpad Pump.fun (CRYPTO: $PUMP) has plunged 80% as investors abandon the platform in favor of perpetual futures contracts, known as “perps.”
Pump.fun is a cryptocurrency platform that allows people to create and trade memecoins instantly with almost no technical knowledge.
User engagement on Pump.fun skyrocketed earlier this year. But it has deteriorated in recent months, with token graduation rates, revenue, and broader network fees all dropping sharply.
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The seven-day average of Pump.fun’s percentage of graduated tokens fell to 0.26% last week, representing an 80% decline over the past three months.
The platform’s revenue has averaged just $800,000 U.S. per day so far in June, a big drop from $4.8 million U.S. a day six months ago.
Pump.fun’s revenue declined 25% between May and June of this year while its graduation rate dropped 53% over the same period of time.
The platform’s PUMP token is down 40% in the past six months. The situation is impacting the Solana (CRYPTO: $SOL) network on which Pump.fun operates.
Fees generated by the Solana network in June amount to just 5,300 SOL per day, a sharp decline from the 33,000 SOL per day generated back in January of this year.
Analysts say that investors and traders have abandoned Pump.fun as they focus more on prediction markets and perps.
Perpetual futures are derivative contracts that allow people to speculate on the price of a stock or cryptocurrency without owning the asset.
Unlike traditional futures contracts, perps have no expiration date, meaning you can hold a position indefinitely, making them popular with investors.
SOL is down 40% this year and trading at $73.87 U.S.
