TLDR
- Pump.fun’s monthly revenue reached $25.6 million in July 2024
- Only 1.41% of tokens created on pump.fun make it to Raydium
- The platform has attracted celebrity endorsements
- Pump.fun’s revenue has consistently increased since its February 2024 launch
- The memecoin market remains volatile with a total cap of $44.94 billion
Pump.fun, a Solana-based memecoin creation platform, has been making headlines lately.
The platform, which allows users to create their own memecoins, has seen significant growth in revenue despite a low success rate for individual tokens.
In July 2024, pump.fun generated a record $25.6 million in monthly revenue, marking a 16% increase from June’s $22.0 million. This continues a trend of month-over-month growth since the platform’s mainnet launch in February 2024. At its current pace, pump.fun is projected to earn $336 million in revenue for the year 2024.
However, the platform’s high revenue contrasts sharply with the success rate of tokens created on it.
Data from Dune Analytics shows that only 1.41% of cryptocurrencies created on pump.fun make it onto Raydium, a Solana-based decentralized finance protocol. This rate has remained relatively stable since May, fluctuating between 1.21% and 1.41%.
To put this in perspective, out of approximately 1.58 million tokens created on pump.fun, only about 22,300 have successfully launched on Raydium. This means that 98.6% of memecoins created on the platform fail to reach the launch stage.
Pump.fun’s business model contributes to its profitability despite the low token success rate. The platform charges a 1% transaction fee on all tokens until they reach a market cap of $69,000. After reaching this threshold, the token gets listed on Raydium, and a portion of its liquidity is burned.
The platform has gained popularity among celebrities, who have used it to create and promote memecoins using their likeness. Notable figures such as Caitlyn Jenner, Iggy Azalea, and Jason Derulo have launched tokens on pump.fun since May 2024.
Recent events have demonstrated how quickly memecoins can gain traction on the platform. In July, following the announcement of a new Shiba Inu dog named Neiro being adopted by the owner of the original DOGE-inspiring dog, a token with the ticker NEIRO was launched on pump.fun. It quickly gained a market cap of $33.5 million.
The broader memecoin market remains volatile. As of recent data, the total market capitalization for memecoins stands at $44.94 billion, with trading volume up 27.29% over a 24-hour period, reaching $4.48 billion. However, among the top 100 memecoins by market cap, only Book of Memes (BOME) showed gains over a recent seven-day period, increasing by 14.79%.
There have been instances where pump.fun’s daily revenue has surpassed that of Ethereum. On July 29, pump.fun generated approximately $864,000 in a 24-hour period, about 57% more than Ethereum’s $550,000 during the same timeframe.
