Pump.fun Resumes SOL Deposits to Kraken

Pump.fun is seeing increased fee production and has resumed its Solana (SOL) deposits to Kraken, depositing $7.81M worth of SOL.

Pump.fun deposited 54,113 SOL to Kraken, valued at $7.81M. Year to date, the platform has deposited over 1.57M SOL, valued at more than $293M.

Overall, Pump.fun has produced 3,232,101 SOL in total fees, worth nearly $500M. The platform has likely cashed out over $250M, primarily during the upcoming 2024 bull market.

Following the latest sale, SOL is trading at $145.56, boosted by a series of ETF applications indicating future demand.

Pump.fun re-enters the top 10 apps, garnering $1.53M in fees in the last day. On peak days, fees can exceed $3M, though the platform’s previous high was above $7M daily. Currently, Pump.fun generates more fees than both Solana and the entire Ethereum chain.

Despite increased fees, Pump.fun’s new token minting has decreased to 20K to 25K daily, with weaker days minting under 2,000 new tokens.

Token Shifts to Raydium Decline

The impact of PumpSwap is evident, as token movements to Raydium have nearly ceased. Now, the integrated DEX only lists tokens that have completed their bonding curves. On average, 200 new tickers daily moved to Raydium have been noted.

PumpSwap started with 26 tokens including popular Solana assets like Pudgy Penguins (PENGU) and Jupiter (JUP). However, trading of new launches remains slow, often lacking enough liquidity necessary for graduation to a DEX.

The DEX has added liquidity for USDT and USDC, alongside established blue-chip memes. In its first week, PumpSwap generated $1.23B in trading volumes, producing an estimated $1M in fees within the Pump.fun ecosystem.

Competing with other DEXs, Pump.fun captures roughly 7% of all Solana DEX volumes. March 24 marked its peak activity with over $890M in daily trading.

Pump.fun has outperformed Meteora in daily token trades, reaching over 14% of all Solana DEX activity on some days. The new exchange has yet to prove itself in minting new tokens and delivering unexpected successes.

Increasing DEX activity could amplify more fee liquidations, especially as Pump.fun has yet to introduce a profit-sharing mechanism for token creators. Most SOL fees generated are either staked or sold in the open market. In coming months, PumpSwap intends to share revenues with creators.

In its initial days, the DEX approached Pump.fun in fees generated. If trading volumes maintain, PumpSwap could compensate for revenues lost due to a slower meme token market.

Successful days have seen the DEX achieving up to $2.8M in daily revenues from 0.25% trading fees and liquidity provider services. Most of the generated fees will return to the main token developer, with limited plans for community rewards. This new model attempts to merge the Moonshot launchpad and DEX, yet it struggles to differentiate between legitimate projects and potential rug pulls.

Competitive Landscape and Wallet Statistics

Most traders in the PvP meme token space are experiencing losses due to the competitive nature of trading. Common losses can reach up to $500. Approximately 1M wallets break even, while 1.3M wallets record losses up to that amount.

Just 33 whale wallets have earned over $1M, whereas four have lost more than $1M on the platform. The trading format at Pump.fun is shifting retail bets into whale wallets, benefiting the top 500 traders.

Only two tokens, FARTCOIN and WOULD, have surpassed $500M in valuation. The Solana meme space remains active, with a total value of top tokens reaching $8.4B. Although the meme market has rebounded, it is still far from previous peak valuations.