The latest data from Whale Insider has revealed a significant decrease in the number of tokens graduating from the popular cryptocurrency launchpad Pump.fun. Only 68 tokens successfully graduated today, a stark contrast to the 215 tokens that graduated the day before.
This downward trend is indicative of a larger decline in token launches and graduations on Pump.fun. Daily launches have plummeted by over 51% in the past two weeks, dropping from around 54k on February 11 to approximately 26k on February 25. Additionally, the graduation rate has hit its lowest point since May 2024, with less than 1% of tokens launched on February 25 managing to graduate.
This decline in graduations could have adverse effects on Pump.fun’s revenue and user activity. A decrease in successful token launches may lead to reduced user engagement and transaction volumes, prompting the platform to reevaluate its strategies and introduce new features to boost participation.
While the exact reasons for this trend are unclear, it is possible that investors are adopting a more cautious approach due to current market conditions. Factors such as heightened volatility, regulatory uncertainties, or a shift in investment focus could be contributing to the decreased graduation rate.
Pump.fun, launched in January last year, is a cryptocurrency launchpad built on the Solana blockchain that allows users to create and trade tokens instantly. Tokens on Pump.fun adhere to a discrete bonding curve pricing model, with prices increasing at predefined market cap milestones. To graduate, a token must reach a specified market cap (approximately 86 SOL), signaling sufficient investor interest and liquidity, and subsequently getting listed on decentralized exchanges like Raydium.
Some users attribute the decline in graduations to an oversaturation of tokens created on Pump.fun, with nearly 8 million tokens generated since its inception, some of which may not have been viable from the start. Moreover, the fallout from the LIBRA token fiasco likely plays a role in the reduced activity, as investors and users have become more cautious following that incident.
Despite these challenges, Pump.fun has weathered storms before, and it remains to be seen how the platform will navigate through the current difficulties and potentially bounce back from this decline in token graduations.