Solana fees plunge to six-month low amid declining Pump.fun popularity

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The Block2024/09/09 16:00

By:The Block

Quick Take The total fees generated by the Solana network have hit a six-month low, with figures not seen since early March. The following is an excerpt from The Block’s Data and Insights newsletter.

The total fees generated by the Solana SOL +3.81% network have hit a six-month low, with figures not seen since early March.

Note that in this case, we are looking at the fees generated in terms of SOL in order to maintain consistency irrespective of the price fluctuations of SOL itself.

On Aug. 31, the Solana network generated approximately 3,800 SOL in fees for the day. While this figure has rebounded slightly, it remains largely unchanged, with daily fees at around 4,000 SOL as of Sept. 6.

This is a far cry from periods throughout the second quarter, where the network easily averaged over 10,000 SOL in fees per day.

Jito validator tips also saw six-month lows this week, with just 2,610 SOL on Friday. The last time this figure was this low was towards the end of February 2024.

It is interesting to note how the pattern of average daily fees generated in Solana closely follows the popularity and presence of Pump.fun. This figure is back to March levels, which was before Pump.fun rose in popularity.

The decline in generated fees coincided with the similarly dwindling popularity of Pump.fun indicates a direct correlation between the two. This is further proved by the revenue of Pump.fun having fallen off a cliff in recent weeks.

On Sept. 6, Pump.fun had generated just $409,000 in fees. Compared to its peak on July 30, where it generated $2.31 million in a single day, Pump.fun’s revenue on Friday represents an 82% drop-off. Since the end of July, the price of SOL has also decreased by roughly 35% at the time of writing.

This is an excerpt from The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.

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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