Pump.Fun became the first platform to cross $100 million in revenue in less than 35 weeks, despite a recent dwindle in activity.
Solana-based Memecoin deployer Pump.Fun has hit a staggering $100 million in revenue in 217 days, becoming the quickest platform to achieve this feat. The protocol’s growth saw it overtake Ethena (ENA)-who achieved a similar height in 251 days.
Pump.Fun’s rise to success sprung from increased platform adoption following the memecoin frenzy on the Solana network. The protocol gained massive traction, reaching its peak of 20,465 tokens deployed on August 13.
Data shows that other protocols that reached $100 million in revenue took at least 35 weeks, compared to Pump.Fun’s 21 weeks. An analysis from Token Terminal and Syncracy shows that Civic (CVC), Pancakeswap (CAKE), and Aerodrone Finance (AERO), who occupied the top five alongside Pump.Fun and ENA, reached the milestone in 306, 325, and 338 days, respectively.
Pumpdotfun is the fastest growing application by revenue in the history of the cryptoeconomy — $100M in revenue in just 217 days.
Love it or hate it Pump is a massive signal to builders to build on Solana and a trojan horse for consumer adoption of blockchains. pic.twitter.com/xhTNpLBoCW
— Ryan Watkins (@RyanWatkins_) September 2, 2024
Fastest Growing Platform
Pump.Fun launched in January with just seven tokens created. The platform continued in this mediocre run till March, when it saw a significant nudge following a renewed memecoin season on Solana. A sensational growth in Solana-based memecoins like Dogwifhat (WIF) and Book of Meme (BOME) saw retail investors flock to Pump.Fun.
Pump.Fun benefited from the user influx, as data from Dune showed it deployed an average of 9,000 tokens daily on the Solana network through April. Degens used the protocol to create memecoins despite having the highest fees compared to other DeFi platforms. For instance, the transaction fee on Pump.Fun is 1%, while that on Pancakeswap is 0.17%.
With these outrageous fees, Pump.Fun generated 687,215 SOL (now worth $92.5 million) in revenues, having launched 1.94 million tokens on the Solana network since launch. The platform saw its highest single-day revenue of 35,075 SOL on August 12.
Hype Wearing Off
With the hype around the Solana network and Pump.Fun fizzling, users have turned their attention elsewhere. The platform’s average token deployment hit 6,547 early in September, the lowest since late March.
Pump.Fun faced criticism for saturating the Solana network with tokens without utility and took the blame for Solana’s congestion. Memecoins on the Solana network were also notorious for promotions through dubious means, like hacking the social media accounts of celebrities and famous firms.
Despite efforts to revitalize activities on the protocol, they seemed to be yielding less fruit. Pump.Fun tried to encourage creators by removing creation fees and rewarding 0.5 SOL to those whose tokens passed the bonding curve. To pass the bonding curve, a token would have to reach a liquidity of $69,000.
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