Solana Network Fees Drop To Six-Month Low As Pump.fun Fades

Key points:

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

Solana network fees hit a six-month low, correlating with the declining popularity of Pump.fun, as both daily fees and revenue have seen significant drops since July.

Solana Network Fees Reach Six-Month Low

Solana network fees have dropped to their lowest level since March, generating around 3,800 SOL in fees as of August 31. While daily fees have recovered slightly to around 4,000 SOL as of September 6, this is a significant drop from the second quarter, when the network averaged over 10,000 SOL in daily fees.

Jito authenticator tips have also dropped to 2,610 SOL, marking a six-month low similar to the fee trend. The decline in network fees is closely related to the decline in the popularity of Pump.fun. Fees generated by Pump.fun have dropped 82%, from a peak of $2.31 million in late July to just $409,000 in early September, according to The Block.

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Pump.fun’s Impact on Solana Network Fees

The decline in popularity of Pump.fun has had a significant impact on Solana network fees. When Pump.fun gained traction at the beginning of the year, Solana fees spiked, only to see a decline in recent months as Pump.fun’s activity slowed. This correlation suggests that the platform played a significant role in driving Solana network fees at the beginning of the year.

With Pump.fun generating significantly less revenue, its influence on Solana fee generation has diminished. Since late July, Pump.fun’s revenue has dropped 82%, contributing to Solana network fees reaching a six-month low.