🔥 Solana circulating supply decreases as failed Pump.fun launches lead to frozen $SOL tokens
The rush to create meme tokens has created a Solana (SOL) sinkhole due to deposits that remain locked in failed launches. Pump.fun may still be holding more than 98% of all tokens at the bonding curve stage, along with their SOL deposits.
Solana (#SOL ) may have an unplanned tool to lock up its tokens – the Pump.fun bonding curve contracts. Only a small percentage of meme tokens graduate to Raydium, transferring all liquidity raised to the DEX.
Some memes end up as rug pulls, putting the SOL in the hands of token developers. But many tokens remain stuck, unable to fulfill the market cap required to leave the bonding curve. At that level, some trading is happening, including rug pulls.
However, some SOL remain at that level, attached to inactive, virtually unknown memes.
🔸 SOL flows into bonding curve contracts, decreasing free supply
Pump.fun has facilitated the creation of a total of 4,022,404 new tokens as of November 29, with tens of thousands more launched each day. For each token, some SOL is deposited until the project reaches the escape valuation to be added to Raydium. Pump.fun is still the main source of tokens generated on Solana, responsible for 70% of all assets, with the remaining 30% created by other projects and tools.
Based on a back-of-the envelope calculation, stalled bonding curves on Pump.fun may hold on average $3,471 per token. After live streams were disabled due to chaotic unmoderated content, Pump.fun tokens may face an even harder time with marketing to raise liquidity.
The SOL locked in bonding curve tokens may come from the creators, bots, and early traders trying to snipe the assets.
Another large portion of tokens are still traded within the bonding curve range, with minimal liquidity. In a potentially exaggerated estimation, they lock up more than 58M SOL out of a total supply of 474.8M tokens. Others have queried a more recent snapshot, coming up with a much lower number for locked SOL.