By Nermeen Nabil SunPump, a memecoin launchpad powered by the Tron blockchain, has seen a steep drop in memecoin activity following its initial success. Data from Dune Analytics shows that the number of new tokens created hit a low of 766 tokens on September 8, compared to a peak of 7531 tokens last month.
The struggle comes as TRX drops from top 10 cryptocurrencies. Overall, crypto markets are dealing with selling pressure. There seem to be few fundamental drivers that could be blamed for the action.
SunPump’s daily activity has recorded fewer than 1,000 memecoins launched each day since September 5. On September 11, the latest trading day, there were 753 tokens created, data shows.
Markets Are Rocky
Inspired by Solana’s Pump.fun, a prominent memecoin launchpad, SunPump allows users to create and trade memecoins easily, without requiring coding skills. The platform aims to provide a user-friendly experience for both newcomers and experienced crypto enthusiasts.
Despite the initial hype, SunPump has started to lag behind Pump.fun. The competing Solana-based platform has generated around 1.9 million tokens so far while the total number on SunPump is over 81,000. In terms of daily tokens created, Pump.fun also outperforms with an average of 6,500 tokens.
As Tron’s memecoin platform loses steam, the value of the TRX token also plummets.
According to data from CoinGecko, TRX soared over 30% to $0.16 following the launch of SunPump, boosting it into the top 10 cryptocurrencies by market capitalization.
However, the momentum was short-lived. TRX now falls to $0.15 with a market cap of $13.2 billion. The price drop has kicked it out of the top 10 tokens, now trailing behind The Open Network’s TON.
TRX previously took over TON’s position after the cryptocurrency tumbled on news of Telegram CEO’s detention. Following the arrest, the price of TON fell by as much as 25%, resulting in a loss of approximately $3 billion in market value.
Some Bright Spots Exist
While SunPump activity dips and Tron’s token struggles, some memecoins post gains. A number of meme tokens launched on Tron, including Sundog, Muncat, Suncat, and SunWukong, have experienced price increase. Sundog lead the gains with a 30% rise over the past 7 days.
When it comes to revenue, SunPump has also struggled to keep pace with Pump.fun.The Solana competitor has generated roughly $12 million in revenue so far this month, compared to SunPump’s $89,285.71. This translates to a daily average revenue of $400,000 for Pump.Fun and only $12,500 for SunPump.
In addition, Santiment data shows a sharp decline in Tron’s social metrics, which suggests decreasing engagement. The platform’s sustainability is put into question due to low user engagement, especially when the general memecoin market has also stagnated in the last few days.
The decline in SunPump’s activity and revenue comes despite the active effort of Justin Sun, Tron’s founder, to promote the platform through social media and discussions with crypto influencers.
Sun recently announced Tron’s strategy of a 100% buyback and burn process to stabilize and potentially increase the value of tokens on SunPump. The move seeks to enhance user confidence and engagement, making the platform more attractive for users to create and trade tokens.
Speculation is also rife about a potential collaboration between Justin Sun and rapper Iggy Azalea, who already launched her own meme coin called Mother Iggy (MOTHER). The token previously gained traction in the crypto space.
The rumors began following a social media suggestion encouraging the two to collaborate. Iggy Azalea also responded positively to the idea, but it remains unclear whether Tron’s founder will decide to bring celebrity meme coins to his blockchain.
While the partnership is not yet confirmed, Sun has expressed interest in celebrity-driven initiatives on the TRON blockchain. The launch of celebrity-driven meme coins on Tron may be what SunPump needs now as it faces competition from other platforms.
The post SunPump Struggles: Tron’s Memecoin Launchpad Sees Sharp Decline in Activity appeared first on Blockonomi.
Nermeen Nabil Khear