Pump.Fun Surpasses $100 Million in Revenue

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

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

Since launching in January 2024, Pump.Fun has facilitated the generation of over 1.8 million memecoins, capitalizing on Solana’s low transaction fees.

Business Model

Pump.Fun operates on a bonding curve model where the price of a coin increases with demand. Initially priced at a base rate, costs escalate with more purchases, providing structured pricing for buyers and sellers.

Once 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, fewer than 1.5% have been successfully listed on Raydium.

Transaction Fees and Growth

Pump.Fun imposes a 1% fee on all transactions, which applies to both purchases and sales of memecoins. Given the extensive volume of token creation and trading, these fees accumulate rapidly.

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 notable trading activity.

Recently, Pump.Fun eliminated user token deployment costs and rewarded token creators with 0.5 SOL ($80) when their tokens crossed the bonding curve. This change has accelerated token generation but attracted complaints regarding the quality of new projects and long-term value of many memecoins.