Solana’s Pump.fun leaving behind major protocols

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The Solana-based memecoin platform Pump.fun has generated a pretty impressive $5.3 million in revenue over the last 24 hours.

This achievement is bigger than the combined earnings of the next 24 highest-grossing protocols.

Profits beyond expectations

Pump.fun allows users to launch new tokens with minimal costs, and has seen unprecedented, surprising success, raking in $5.33 million in just one single day.

This figure literally dwarfs the daily revenues of well-established networks, with Ethereum bringing in $2.3 million and Solana earning $1.6 million within the same period.

The platform generates revenue by charging a 1% fee on every trade conducted on its platform.

This simple yet effective model has pushed Pump.fun to the top of the earnings charts, even as it faces harsh criticism from various market observers.

Money grab, or real fun?

Pump.fun has been at the center of controversy, from the beginning, with critics accusing it of undermining the whole memecoin market.

Which sounds ironic, as we thought the memecoin phenomen is nothing but a joke. It’s in the name.

The platform’s low-cost token deployment feature, which allows users to create a new token for as little as $2, has been blamed for flooding the market with low-quality coins.

In response, Pump.fun doubled down its reputation, boasting about the ability to launch 10,000 new tokens in just three hours during a conversation on X between former President Donald Trump and Elon Musk.

To motivate token creation, Pump.fun announced a new reward system. Token creators will receive 0.5 SOL, around $80 at current prices, if their tokens successfully complete the bonding curve and are deployed on Raydium, a Solana-based automated market maker.

But unfortunately the data revealing that 98.6% of tokens launched on Pump.fun fail to complete this process and never make it to Raydium.

solana
Source: Dune Analytics

The rise of Pump.fun

Launched in January 2024, Pump.fun was created as a response to the often opaque and unfair practices associated with traditional memecoin launches, such as pre-sales and insider trading.

The platform announced they want to bring transparency to the process by making all token-related data public, allowing anyone to see the number of tokens in circulation and their ownership distribution. It worked.

Have you read it yet? It’s litigation season: Three Arrows Capital sues TerraForm Labs


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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