TLDR
- 98.6% of memecoins created on pump.fun fail to launch
- Pump.fun generated a record $25.6 million in revenue in July 2024
- The success rate for pump.fun tokens making it to Raydium is around 1.41%
- Pump.fun charges a 1% fee on transactions until tokens reach $69,000 market cap
- Celebrity involvement has contributed to pump.fun’s popularity
Pump.fun, a memecoin creation tool on the Solana blockchain, has been making waves in the cryptocurrency world.
Despite its growing popularity and impressive revenue figures, data shows that the vast majority of tokens created on the platform never actually launch.
According to Dune Analytics, 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%. The all-time high success rate was 2.56%, reached on February 16.
To put this into perspective, out of 1.58 million tokens created on pump.fun, only about 22,300 have made it onto Raydium. This means that 98.6% of memecoins created on the platform fail to even launch.
Despite the low success rate, pump.fun has been generating significant revenue.
In July 2024, the platform reached a record high of approximately $25.6 million in monthly revenue, a 16% increase from June’s $22.0 million. Since its mainnet launch in February 2024, pump.fun’s revenue has been steadily increasing each month.
2/23
We're starting to flush out memes.
The "graduation rate" of coins on Pump Fun (those that made it to $69k and got listed on a dex) is stagnant around 1.4%https://t.co/fCruRRnvZW
(h/t @0xBreadguy)
— Adam Cochran (adamscochran.eth) (@adamscochran) August 1, 2024
The platform’s business model contributes to its profitability. Pump.fun 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.
Interestingly, 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.
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.
pump fun didn’t ruin memecoins it just pulled back the curtain on how the sausage is made and made it very easy to make aforementioned sausage
market was simply given what it wanted
— bunjil (@bunjil) August 1, 2024
Recent events have shown 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.
As of July 2024, pump.fun’s cumulative revenue stands at $77.8 million and is projected to reach $336 million for the year if current trends continue.
This indicates ongoing demand for memecoin creation services, despite the high failure rate of individual tokens.
The total market capitalization for memecoins stands at $44.94 billion as of the latest data, 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%.
