Pump.fun Overtakes Ethereum in This Race, But Why are Users Frowning?

Solana-based memecoin deployment platform, Pump.fun generated $5.3 million in revenue in a single day. This is not only superior to the daily revenues of the top blockchains like Ethereum and Solana but also the top 24 protocols.

Pump.fun’s revenue target set $5.3 million over the last 24 hours, which overshadowed the total revenue of Ethereum and Solana. ETH and SOL Their revenues amounted to $2.3 million and $1.6 million, respectively.

Pump Fun Outperforming in the Market

According to data from DefiLlama, this figure not only dwarfs Ethereum’s $2.3 million and Solana’s $1.6 million in combined daily revenue but also exceeds the total earnings of the next 24 highest-earning protocols combined.

The platform achieves this by charging a 1% fee on all trades conducted through its system. This fee structure, coupled with the high volume of transactions, has enabled Pump.fun to amass substantial revenue in a short period.

Pump.fun’s financial position is undeniably its strong side, however, it has not gone without criticism. The platform was blamed for increasing the meme-coin market by letting anyone create new tokens for as low as $2.

In spite of its remarkable financial hitherto, Pump.fun has been entangled in heated debates on several occasions. From different groups, the critics argue that Pump.fun is attempting to kill the memecoin market.

In response to these criticisms, Pump.fun has leaned into its role as a disruptor. The platform recently boasted that it launched 10,000 new tokens within a three-hour window. This flaunting took place during a high-profile X space conversation between former President Donald Trump and Elon Musk.

This approach has divided the community, with some people thinking that the platform’s approach is very good while others caution that it might end up causing serious long-term damage to the whole memecoin ecosystem.

Memecoin Market Transparency Woes

Pump.fun recently announced some new incentives to enhance the successful launch of its platform.

As reported by The Coin Republic, on August 9, Pump.fun’s team announced that they would give the reward of 0.5 SOL (approximately $80 at the present price). This would be for creators whose tokens were bonded to the smart contract and reached Raydium listing.

This incentive comes in the wake of data revealing that a staggering 98.6% of tokens launched on Pump.fun. However, these tokens never completed the bonding curve and failed to list on Raydium.

Pump.fun Solana Sell-Off

As per the Lookonchain data, the Pump.fun fee account sold a total of 222,073 SOL for a cost of $35.54 million during the three months.

The sales were done at an average cost of $160 per SOL, in the biggest transactions 56,950 SOL were sold in mid-May 2024, 30,000 SOL in late June, and 55,000 SOL in late July when SOL was trading above $180.

This deliberate selling off is not just isolated to Pump.fun. There is evidence that other whales have been doing likewise, for instance, moving 594,000 SOL, which is the value of approximately $86 million, and placing the funds into” Coinbase, Binance, OKX. Since that time, Solana hasn’t managed to pick up the pace, and the pain continues.