Pump.fun Tops Ethereum in Daily Revenue with $2M Surge
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2024-07-03 07:05
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Pump.fun, a leading memecoin launchpad on the Solana blockchain, has achieved a significant milestone. It generated $2 million in daily revenue, making it the highest revenue generator among all blockchains and protocols on July 1, surpassing Ethereum.

 

Quick Take 

  • On July 1, Pump.fun generated $2 million in daily revenue, surpassing Ethereum.

  • Over 11,500 memecoin tokens were created on Pump.fun in a single day.

  • The platform's cumulative revenue has reached $50.9 million and celebrity-themed meme coins has driven the surge in token creation.

  • Pump.fun is projected to reach $268.95 million in annualized revenue.

Pump.fun revenue | Source: Dune 

 

On Monday, Pump.fun recorded an impressive $2 million in daily revenue, outstripping Ethereum's $1.91 million, as per a report on CoinDesk. This surge was driven by the creation of 11,528 tokens, bringing the platform's total to nearly 1.2 million tokens. The cumulative revenue on Pump.fun has now reached $50.9 million, according to data from DefiLlama and Dune Analytics.

 

Read more: What Is Pump.fun, and How to Create Your Memecoins on the Platform?

 

Pump.fun Generates Over $22M Revenue in June 

Pump.fun’s revenue spikes in July | Source: DefiLlama 

 

Despite a $1.6 billion decrease in the total memecoin market cap since mid-June, Pump.fun continues to average $692,000 in daily revenue. This consistent performance indicates ongoing user interest and activity on the platform. If the current momentum is maintained, Pump.fun is projected to achieve an annualized revenue of $268.95 million, calculated by multiplying the revenue data from the last 30 days by 12, as per a report on Unchained Crypto.

 

Pump.fun recorded $22.05 million in revenue in June alone, highlighting its robust growth trajectory. The platform's success has also spurred competition, with new entrants like Dexscreener's Moonshot aiming to capture market share in the memecoin space.

 

Read More: Solana's Pump.fun Generates $30M from Memecoin Mania

 

Celebrity-Driven Memecoin Frenzy Drives Pump.fun’s Growth

The spike in revenue can be attributed to the ongoing trend of celebrity-themed meme coins. Since late May, celebrities like Caitlyn Jenner, Iggy Azalea, Trippie Redd, and Davido have launched their own meme coins on Solana, attracting significant attention and activity on Pump.fun. The platform's low costs make it an attractive option for creating and trading tokens, contributing to its rapid growth.

 

Pump.fun's business model includes a 1% swap fee and a two SOL fee for listing tokens on the decentralized exchange Raydium. This straightforward approach has fueled user engagement and transaction activity on the Solana ecosystem.

 

Are 95% of Tokens on Pump.fun Scams? 

However, Pump.fun's rapid growth has not been without challenges. The platform has seen a significant rise in fraudulent activities, with an estimated 95% of tokens being bogus. The low cost of launching tokens on Solana has made it easier for bad actors to create and manipulate tokens, leading to various scams.

 

One common scam involves developers buying a small percentage of tokens and then quickly dumping them, causing the token's value to plummet. Another tactic, known as "King of the Hill" (KOTH), involves developers selling off large quantities of tokens, triggering panic among other traders and leading to a market crash.

 

Despite these issues, Pump.fun's financial success and dominant market position underscore its impact on the memecoin market and the broader cryptocurrency ecosystem, especially within the Solana community.

 

Conclusion

Pump.fun's rise to the top of the revenue charts demonstrates the growing popularity and potential of meme coins and blockchain-based token creation platforms. With celebrity involvement and a user-friendly, cost-effective model, Pump.fun has carved out a significant niche in the crypto world. However, the platform must address the challenges posed by scams and fraudulent activities to sustain its growth and maintain user trust.

 

As Pump.fun continues to evolve, its influence on the memecoin market and the broader crypto ecosystem will be closely watched by industry observers and participants alike.

 

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