Graphite Protocol (GP) Price Prediction

Deep Dive

1. Ecosystem Revenue & Product Launches (Bullish Impact)

Overview: Graphite’s revenue surged from $5M to $50M/year in two months, primarily via @bonk_fun, which holds 80% of Solana’s meme coin market. A mobile app expansion and new gambling infrastructure are planned, with fees partially funding $GP buybacks (GraphiteProto).

What this means: Higher platform usage directly increases buyback volume, creating deflationary pressure. Success here could offset current bearish technicals (e.g., -83% from April highs).

2. Buyback Strategy & Supply Risks (Mixed Impact)

Overview: The protocol uses 7.6% of @bonk_fun fees to buy and burn $GP, removing 2.81% of supply since July. However, the team retains mint/freeze authority, and 10% of vested tokens face potential relocking (CoinMarketCap).

What this means: While burns enhance scarcity, centralized token control and unlock risks (circulating supply: 31M of 59M total) could trigger sell-offs if trust erodes.

3. Solana Meme Coin Competition (Bearish Impact)

Overview: Pump.fun recently overtook letsBONK.fun in daily volume ($144M vs. $34M), threatening Graphite’s fee model. Solana’s co-founder highlighted the sector’s “no moats” reality (Cryptonews).

What this means: Market share losses could reduce buyback fuel, exacerbating downside risks. GP’s 48.6% weekly drop (August 11) aligns with this narrative.

Conclusion

Graphite Protocol’s price trajectory depends on balancing ecosystem growth against volatile supply mechanics and cutthroat competition. While revenue-linked buybacks offer upside, reliance on a single platform in a contested niche heightens vulnerability. Can @bonk_fun regain dominance post-Pump.fun’s resurgence, or will dilution fears override bullish fundamentals?