The Solana blockchain has broken previous records for daily active users.
As reported by Artemis.XYZ data, Solana (SOL) achieved the highest number of daily active addresses in the history of blockchain technology, even as the fifth-largest cryptocurrency revisited its lows from April and January. At the time of writing, a single SOL coin was valued at approximately $136.
On September 10, Artemis highlighted that SOL surpassed five million users in a 24-hour period, while its nearest competitor had just over 2.5 million daily active wallets on the same day.
Surge in Solana’s Activity Amid Declining Memecoin Sector
This notable milestone for Solana’s active addresses occurred in spite of a downturn in its memecoin sector. Specifically, Pump.fun has seen a significant drop in fees since its peak in late July.
Recent data indicated an 80% decrease in revenue from the memecoin launchpad. Additionally, general SOL fees and prices have also fallen since July, illustrating a link between SOL revenue and Pump.fun’s activity.
Is Pump.fun Facing a Decline?
While the broader cryptocurrency market is uncertain, the decline of Pump.fun could indicate a waning trend for Solana memecoins. This protocol was the fastest decentralized finance platform to reach $100 million in revenue, achieving that mark in about seven months. However, it seems to have reached its peak, as debates continue regarding its impact on cryptocurrency and DeFi.
During its prime, Pump.fun enabled developers to launch over 500,000 tokens in a single month. Memecoins flooded SOL-based exchanges such as Raydium, transforming speculative investors into millionaires overnight or causing them to lose 99% of their investment in mere moments.
The SOL chain became a hub for memecoins, drawing concerns from creators like Vitalik Buterin regarding this trend. The main worries were focused on the sustainability of Pump.fun and the casino-like environment it fostered.
Nonetheless, Pump.fun remains operational, generating numerous memecoins each day. An analysis by crypto.news indicated that the overabundance of meme tokens was associated with diminishing average returns. Fewer than 1% of memecoin traders managed to make over $1,000 from these speculative ventures.
