Pump.Fun, a token launchpad native to the Solana blockchain network, continues to help fuel the frenzy around cryptocurrencies inspired by internet memes and jokes.
The platform known for helping users create memecoins generated a record high of roughly $25.6 million in revenue for July, a roughly 16% increase from last month’s $22.0 million, data from DefiLlama shows.
Tokens created via Pump.Fun are intended to be what is called “fair-launched,” meaning without a presale or team allocation. When a memecoin is created on Pump.Fun, the protocol takes a 1% fee from all transactions until the token reaches a market cap of $69,000, after which the token gets listed on decentralized exchange Raydium and a portion of the token’s liquidity gets burned.
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Pump.Fun’s record revenue for July came after the owner of Kabosu, a Shiba Inu pet dog whose photo inspired original memecoin DOGE, shared photos on X of a new Shiba Inu dog they were adopting named Neiro (Kabosu passed away in May).
The same day that Kabosu’s owner announced Neiro’s adoption, a token with the ticker NEIRO launched on Pump.Fun. Since then, NEIRO has garnered a market cap of $33.5 million. In addition, the SOL-NEIRO liquidity pool on Raydium has had the second-most fees among all pools in the past 24 hours, with over $108,000 amassed at the time of writing.
Following its mainnet rollout in February 2024, Pump.Fun’s monthly revenue figure has risen each successive month. Cumulative revenue for the Solana-based memecoin launchpad now stands at $77.8 million and is on pace to hit $336 million for the year, highlighting the demand among crypto users for services that help them create memecoins.
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“Pump(dot)Fun, as a fair launch platform that burns liquidity once the market cap is reached, is an interesting counter to this problem [of fake volume that tricks people into buying pump and dump scams] — since by definition to launch the coin at the $69K market cap minimum requires a few [thousand dollars] lost by the issuer to [increase its market cap] and get listed on Raydium,” wrote Flipside Crypto’s data scientist Carlos Mercado in a Telegram message to Unchained.
“Nonetheless, as users hear about celebrity coins and cute puppy tokens…they (1) generate fees for the blockchain [and] (2) onboard users who, hopefully after not losing too much, stick around for the more viable opportunities,” Mercado added.
