Launchcoin, the official token of the Believe token launchpad on Solana, is struggling to recover from its downturn, with product revenue and DEX volume down significantly from their all-time highs.
After rebranding from Clout.me to Believe.app, Launchcoin and the Believe ecosystem exploded, with the token surging more than 4,000% to a $350 million market capitalization in just four days. During the same period, the product’s revenue also skyrocketed, increasing from just $2,000 on May 11 to $1.3 million on May 14. On a weekly basis, Believe.app went from generating $30,500 in one week to a whopping $4.2 million the following week.
However, the platform has struggled to reclaim even 50% of the revenue it generated during its breakout week, and the token’s price action has caught up.
Due to the intensity of its blowoff top, Launchcoin’s weekly revenue is down 94% from the second week in May. However, it is worth noting that even at $260,000 in weekly revenue, Believe remains in the top 50 revenue generators in DeFi.
The token price has followed suit, down 56% in the last 30 days and 67% from its all-time high of $0.35, currently changing hands at $0.115.
A potential catalyst for the continued decline in fees and revenue may be the decreased activity on the launchpad following a series of updates announced on June 8. These changes were designed to disincentivize malicious actors who were taking advantage of the hype behind the Believe ecosystem.
While the updates are efficiently warding off short-term extractors looking to make a quick buck, they are likely to have reduced overall volume on new launches as well.
Speculators also appear to be abandoning ship, as displayed by Launchcoin’s token volume. The token traded between $550 million and $600 million in volume during two consecutive weeks in May; however, this volume has slowed by 58%, after recording just $227 million in volume between June 8 and June 15.
Despite the token’s falloff and overall decline in revenue, some tokens from the Believe ecosystem are still doing well, particularly DUPE, which is an application that aggregates shopping deals online through its Deal Unlocking Price Engine (DUPE). DUPE reached a new all-time high on June 19 of $0.032, or a $32 million market capitalization.
The Believe team did not respond to The Defiant’s request for comment.
