Solana breaks record with over 5 million daily users

Solana has set a new record for the number of daily users on its blockchain. Data from Artemis.XYZ shows that Solana reached over five million daily active addresses on September 10, the highest number ever recorded in blockchain history.

On the same day, Solana’s closest competitor stalled at just over 2.5 million active wallets, further cementing Solana’s leading position in user activity.

User Activity Growth Despite Memecoin Decline

Solana’s impressive user growth has interestingly coincided with a decline in activity in the memecoin sector. In particular, Pump.fun, a popular platform for launching memecoins, has seen its revenues plummet since their peak in late July.

Last week, Pump.fun reported a whopping 80% drop in revenue, which also led to lower transaction fees and prices on the Solana network. This points to a strong correlation between activity on Pump.fun and the revenue Solana generates from transactions.

Is Pump.fun’s success declining?

As the broader crypto market continues to grapple with uncertainties, Pump.fun’s decline suggests that the memecoin hype on Solana is waning. The platform, which generated $100 million in revenue in just seven months, appears to have already peaked, leaving critics wondering whether Pump.fun has made a positive contribution to the world of cryptocurrency and decentralized finance (DeFi).

During Pump.fun’s peak, developers were able to launch over 500,000 tokens in just one month, leading to a flood of memecoins on Solana’s exchanges, such as Raydium. This provided an opportunity for speculators to make quick profits, but also caused some investors to lose nearly all of their capital.

Despite the concerns, including those raised by prominent figures such as Vitalik Buterin, Pump.fun remains active and new memecoins are launched daily. However, an analysis by crypto.news shows that the oversaturation of memecoins has led to low average returns. Less than 1% of memecoin traders managed to make more than $1,000 from these risky speculations.

Solana remains a strong player

Meanwhile, Solana remains a prominent player in the crypto space, having achieved its highest number of daily active addresses ever. However, questions are increasingly being raised about the sustainability of some popular protocols within the Solana ecosystem.