Pump.Fun, a memecoin generator built on the Solana blockchain, is approaching a significant milestone with nearly $100 million in cumulative revenue just eight months after its launch in January 2024. According to DeFiLlama, the platform’s total revenue has surged to $94.5 million, up from $50 million at the end of June.
The platform enables the creation of over 1.8 million memecoins, leveraging Solana’s low transaction fees. Pump.Fun uses a bonding curve pricing model, where the cost of a coin increases as demand rises. Once a token reaches a market cap of $69,000, $12,000 in liquidity is transferred to Raydium, a decentralized exchange, and burned. Despite the large volume of tokens created, less than 1.5% of them have successfully listed on Raydium.
Pump.Fun charges a 1% transaction fee on both the purchase and sale of memecoins, rapidly accumulating revenue due to the high volume of trades. The platform’s low barrier to entry, with a token creation cost of around $2, has fueled its growth, along with its focus on volatile memecoins, which attract traders seeking short-term gains.
Recently, the platform removed token deployment costs and started rewarding token creators with 0.5 SOL ($80) for tokens that cross the bonding curve, accelerating token generation. However, some users have raised concerns about the quality and long-term value of the many memecoins launched on the platform.