Throughout last week, specifically from June 10-14, pump.fun averaged roughly $870,000 in daily fees. This week, however, the picture wasn't so rosy. The platform saw its daily fees drop to an average of just around $605,000, marking a 30% decrease week-over-week.
The notable reduction in risk appetite is particularly significant for a platform like pump.fun, which represents one of the industry's most extreme points on the risk curve. The assets involved and deployed on the platform are often of the most speculative nature, attracting participants looking to make quick gains but also making them quick to retreat and avoid when the market turns sour.
Pump.fun has been making up, on average, 35% of Solana's total fee revenue over the past two months. It's worth noting that this 35% figure has not taken into account the fees generated from third-party DEX or aggregator swaps for tokens that originated and were deployed from pump.fun. However, this dependency also comes with considerable risks. The speculative nature of pump.fun means that its activity is inherently cyclical and prone to rapid fluctuations. Should the thrill of speculation wane or market conditions turn unfavorable, the platform could see a significant slowdown in activity. This, in turn, could lead to a deep and sudden decline in transaction fees and overall activity on Solana.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: cleantechnica - 🏆 565. / 51 Read more »