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Sun Token ($SUN) has gained more than 231% over the past month amid a surge in the popularity of SunPump, a Tron-based meme coin launchpad launched last month.
On Friday, August 30, Sun Token reached $0.028, its highest level since December 2021. The surge represents a staggering 526% increase from its lowest point in 2023, driving the token’s market capitalization from $101 million on August 17 to over $328 million.
Memecoins on the TRON ecosystem are a rare shoot of green during a largely red period for the crypto markets.
The price increase mirrors the broader performance of other tokens within Justin Sun‘s ecosystem. TRX, the native token of the Tron blockchain, saw its value rise to $0.1660, the highest it has been since May 2021. Similarly, BitTorrent surged to $0.0000010, and Just (JST) reached $0.034, marking a 40% increase from its lowest point this year.
Furthermore, the total value locked (TVL) within SUN’s DeFi platform has enjoyed a significant boost. According to data from DeFi Llama, SUN’s TVL has reached $781 million, the highest level since November 2022.
SunPump Meme Coin Launchpad Gains Traction
The Sun Token rally is largely attributed to the growing adoption of the SunPump meme coin launchpad on the TRON network. The platform, launched last month, has even overshadowed the previously dominant Solana-based platform, Pump.fun.
In the wake of its launch, SunPump outpaced Pump.fun in the creation of new tokens over the period of 24 hours. Specifically, 7,352 new tokens were launched on SunPump, surpassing the 5,694 tokens launched on Pump.fun during the same period, according to Dune Analytics.
Pump.fun has been a significant player in the meme coin space throughout the year, facilitating the launch of some of the most successful tokens, including Billy and Michi.
At its peak, the platform saw over 20,000 tokens launched daily, generating more than $2 million in revenue. However, the launch of SunPump last week has disrupted this momentum, signaling a shift in the market.
The shift began when Justin Sun, the creator of TRON, introduced SunPump as the “first meme fair-launch platform.” Since its launch, SunPump has gained significant traction, with tokens like Sundog (SUNDOG) on TRON skyrocketing to a market cap of $190 million.
The sun ?? shines in the season of memes. https://t.co/lTsvWeBo76
— H.E. Justin Sun??孙宇晨(hiring) (@justinsuntron) August 13, 2024
In comparison, Pump.fun’s top token, Michi (MICHI), currently has a market cap of $61 million. SunPump’s rapid success has drawn the attention of traders, many of whom are migrating from Solana to TRON in search of better opportunities.
One of the key factors driving this migration is the higher “graduation” rate on SunPump’s launchpad. Currently, 1.98% of tokens launched on SunPump have been listed on Sunswap, TRON’s decentralized exchange, after meeting the necessary trading volume thresholds.
In contrast, only 1.26% of tokens launched on Pump.fun have made it to Raydium, Solana’s decentralized exchange.
What is the Sun Ecosystem?
Sun ecosystem is a decentralized finance (DeFi) hub built on the TRON blockchain. The Sun platform provides a suite of DeFi services, including yield farming, staking, liquidity mining, and decentralized governance.
Moreover, the Sun platform supports various decentralized applications (dApps) and services. Central to the Sun ecosystem is SunSwap, a decentralized exchange (DEX) that enables users to trade tokens and provide liquidity.
Last year, the platform launched SunSwap V3, which “enhances capital efficiency through aggregated liquidity technology,” according to its website. The model allows liquidity providers to customize their pools with specific price ranges and fee tiers, enhancing capital efficiency.
The ecosystem also includes SUN DAO, a decentralized autonomous organization that governs the platform. SUN token holders play a key role in this governance structure, with the power to vote on platform proposals and earn rewards through staking.
The Sun ecosystem has also integrated various stablecoin mechanisms, including USDD, a stablecoin pegged to the US dollar, which strengthens the platform’s stability and usability.
Legal Issues Plague Sun
Last year, the US Securities and Exchange Commission (SEC) unveiled fraud and unregistered securities charges against Sun and three of his wholly-owned companies, Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc, for the sale of their TRX and BTT tokens.
The regulator alleged that Sun and the companies paid celebrities with vast social media followings to hype TRX and BTT and directed them not to publicly disclose their compensation.
This came as Sun has seen numerous tokens he’s purchased or endorsed either collapse or not perform as designed. These include Huobi’s native token (HT), TrueUSD (TUSD), USDD, and USDJ, a collateral-based decentralized stablecoin.
The USDD and USDJ stablecoins remain off their intended price points, while the True Token network no longer has a known auditor.
In response, Sun and his legal team moved to dismiss the lawsuit in April, arguing that the SEC lacks jurisdiction over foreign digital asset transactions conducted on global platforms.
The Bottom Line
It seems meme season is still on, with Sun Token (SUN) experiencing a 231% surge over the past month, fueled by the growing popularity of the SunPump meme coin launchpad on the TRON network.
The rally pushed the token’s market capitalization from $101 million to over $328 million and shows the power of a platform that allows coin creation. As the old saying goes, “in a Gold Rush, be the one selling the pick axes”.
