Pump.Fun nears $100 million cumulative revenue within eight months of launch

Pump.Fun, a memecoin generator on Solana, is expected to surpass $100 million in cumulative revenue in the coming days.

According to DeFiLlama data, the platform’s cumulative revenue is currently at $94.5 million, up from $50 million at June's end. 

Since launching in Jan. 2024, the platform has facilitated the generation of over 1.8 million memecoins, leveraging Solana’s low transaction fees.

PumpFun operates on a bonding curve model where the price of a coin increases as demand rises. Initially priced at a base rate, the cost escalates as more purchases are made, providing a structured price progression for both buyers and sellers.

Once the cumulative purchases on the bonding curve reach a market cap of $69,000, $12,000 worth of liquidity is transferred to Raydium, a decentralized exchange, where it is subsequently burned. Out of the 1.8 million tokens generated through Pump.Fun, fewer than 1.5% have successfully been listed on Raydium.

PumpFun imposes a 1% fee on all transactions within its platform. This fee applies to both purchases and sales of memecoins. Given the extensive volume of token creation and trading, these fees can rapidly accumulate.

Pump.Fun has seen explosive growth due to its low barrier to entry (around $2 to launch a token) and its focus on memecoins, which are often highly volatile and generate significant trading activity, even if short-lived.

Recently, Pump.Fun eliminated user token deployment costs and started rewarding token creators with 0.5 SOL ($80) when their tokens crossed the bonding curve.

This change has further accelerated the number of tokens generated on the platform. However, it has also attracted complaints from some users over the quality of new projects launching via the platform and the lack of long-term value of thousands of fringe memecoin projects.