LetsBonk recently surpassed Pump.fun to become the leading meme coin launchpad on the Solana network.
This development comes just ahead of Pump.fun’s (PUMP) Token Generation Event (TGE). Here’s a look at how the launch of PUMP tokens could affect BONK and LetsBonk’s current dominance.
Pump.fun’s TGE Raises Big Questions for BONK
As reported by BeInCrypto, Pump.fun’s dominance in the meme coin launchpad sector has been challenged by LetsBonk for the first time. Data indicates that LetsBonk commands a 54.80% market share, with a 24-hour trading volume reaching 563 million USD.
This milestone has captured the community’s attention, particularly just before PUMP’s TGE. The event is anticipated to influence the Solana ecosystem and the meme coin market significantly.
Given its current performance, crypto analyst Unipcs shared an insightful perspective on Pump.fun’s TGE and its implications for BONK and the LetsBonk ecosystem.
Firstly, Unipcs believes that LetsBonk will be “the industry leader for the foreseeable future.” This outlook is attributed to several factors, including its creator-friendly strategy and alignment with the Solana ecosystem.
“[LetsBonk’s] growth has been purely organic and driven by alignment with the Solana ecosystem, without promises or expectations of any token or incentives since the BONK token exists prior to its launch and it has always been clear that fees will go towards buying and burning BONK,” Unipcs stated.
Secondly, Unipcs suggests that PUMP’s TGE could be a bullish catalyst for BONK, bolstering the LetsBonk ecosystem. This view challenges the notion that Pump.fun’s TGE might drain liquidity from leading meme coins and the LetsBonk ecosystem.
According to Unipcs, such an impact might have been plausible one to two weeks ago, but it no longer holds.
“If PUMP raised at $4 billion and is valued by as much as $10 billion by third-parties, then how much should BONK be worth considering its recent market dominance and potential for sustained future dominance?” Unipcs remarked.
Research from Messari values PUMP at a fully diluted valuation (FDV) of $7 billion. However, LetsBonk demonstrates superior value through its model, which allocates 58% of fees to buy and burn BONK, creating sustained upward price pressure.
Lastly, Unipcs expresses optimism, asserting that LetsBonk’s dominance will benefit the broader meme coin market. This could directly contribute to greater stability in SOL’s price in the future.
Amid intensifying competitive pressures, Pump.fun may hasten its TGE and introduce new strategies to reclaim market share. The TGE appears to have been initiated on the Gate exchange. However, for reasons undisclosed, Gate removed this information shortly after its announcement.
