TLDR
- Pump.fun, a Solana-based token deployer, generated $5.3 million in revenue in 24 hours
- This revenue outpaced the next 24 highest-earning protocols combined
- Pump.fun reached nearly $30 million in revenue for July 2023
- The platform allows users to create and distribute their own tokens
- Only 1.41% of tokens launched on Pump.fun get listed on decentralized exchanges
Pump.fun, a Solana-based token deployer, has recently made headlines in the cryptocurrency world due to its impressive revenue figures.
The platform, which allows users to create and distribute their own tokens, generated $5.3 million in revenue within a 24-hour period.
This remarkable achievement surpassed the combined daily revenue of the next 24 highest-earning protocols.
The token deployer’s success extends beyond this single-day record. In July 2023, Pump.fun reached a monthly revenue of nearly $30 million, as reported by Entropia Intel on August 13.
This substantial income stems from the platform’s fee structure, which charges a 1% fee on all trades occurring on its platform.
Pump.fun’s rise to prominence is closely tied to the growing popularity of Solana-based memecoins. Tokens like WIF and BONK have gained traction in the crypto community, contributing to the platform’s record revenues.
The appeal of Pump.fun has even attracted celebrities such as Andrew Tate and Iggy Azalea, who have launched their own tokens on the platform.
However, the platform’s high revenue figures don’t tell the whole story. Data from Dune Analytics reveals that only 1.41% of tokens launched on Pump.fun successfully secure a listing on Raydium, a Solana-based decentralized finance protocol.
This low success rate has remained relatively constant since May, with its all-time high of 2.56% reached on February 16.
The ease of token creation on Pump.fun has led to a surge in new coins. During a single three-hour period, coinciding with an X space conversation between former President Donald Trump and Elon Musk, the platform reported the launch of 10,000 new coins.
3 hours. Tens of thousands in the trenches. 10,000 coins.
ARE YOU NOT ENTERTAINED!? pic.twitter.com/kr7KkmHzVx
— pump.fun (@pumpdotfun) August 13, 2024
In response to the low success rate of tokens, Pump.fun announced on August 9 that it would reward token creators with 0.5 SOL (approximately $80 at current prices) if their tokens completed their bonding curve and were deployed on Raydium.
Pump.fun was originally launched in January 2024 with the goal of providing transparency in token launches. Unlike traditional memecoin launches that often involve pre-sales and insider buying, Pump.fun ensures that all data concerning tokens created on its platform is public and transparent. This allows anyone to see the number of available tokens and who holds them.
Despite its high revenues, Pump.fun has faced criticism from market pundits. Some accuse the platform of “killing” memecoins due to the low cost of launching a new token, which can be as little as $2.
The platform has responded to these accusations by leaning into them, often boasting about the number of new coins launched in short timeframes.
