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The average daily transaction fee on pump.fun plummeted by 30% compared to last week, possibly due to factors such as the overall market decline

The average daily transaction fee on pump.fun plummeted by 30% compared to last week, possibly due to factors such as the overall market decline

Bitget2024/06/27 00:35
SOL+2.47%

Last week (June 10th to 14th), the daily average cost of pump.fun was about $870,000. However, this week's platform's daily average cost dropped to about $605,000, a decrease of 30% from the previous week.

This decline may be mainly attributed to the adverse effects of broader market conditions and a 2.21% drop in SOL prices within this week, leading to a general reduction in users' risk preferences. A significant decrease in risk preference is particularly important for platforms like pump.fun because it represents one of the most extreme points on the industry's risk curve.

The assets involved and deployed on the platform usually have speculative nature attracting participants who hope for quick profits but they also quickly withdraw when market conditions worsen to avoid risks.

In addition, compared with the previous week, a sharp drop in income indicates that token deployment volume and overall activity have also decreased accordingly. This might suggest that both the platform and its hosted tokens have reached saturation point. With an excessive amount of new coins being deployed demand and attention may already exceed what can be accommodated by current platform capabilities.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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