Pump.Fun, a Solana-based protocol that helps users create and gamble on memecoins, has been generating significant revenue for its creators. The protocol has almost reached $100 million in cumulative revenue, with nearly $6.3 million generated in the last seven days alone.
Key Highlights:
When a token on Pump.Fun reaches a market cap of $69,000, some of its liquidity is deposited in decentralized exchange Raydium and burned. However, out of the total tokens deployed, just over 1% have graduated from Pump and been promoted to Raydium.The gap between Pump.Fun's revenue and the success rates of its users and tokens illustrates how most memecoin traders "chase phantom gains, ending up empty-handed," as one X user put it. The real profit, it seems, lies in creating the game itself rather than playing it.
- This revenue surpasses that of long-standing projects such as layer 1 network Solana, decentralized lending venue Aave, and stablecoin issuer MakerDAO.However, the success of Pump.Fun's revenue generation has not translated to the success of its users or the tokens minted via the memecoin factory.
- According to a Dune Analytics dashboard created by an onchain analyst going by @Adam_Tehc, more than two-thirds of wallet addresses on Pump.Fun are unprofitable.The tokens launched through Pump.Fun have also struggled to gain traction, with only 32 out of the over one million deployed tokens currently having a fully diluted valuation (FDV) exceeding $1 million, data from GeckoTerminal shows. The top three tokens by FDV include MICHI, DADDY, and MOTHER, which collectively have an FDV of almost $140 million.
