Make it easy, and users will come.
That could be the theme for Pump.fun, a protocol that attempts to make trading and creating memecoins simple and safe.
The platform generated $1.2 million in revenue on Monday, surpassing Solana’s $730,000 and becoming the third-highest revenue-generating project on that day, according to data from DefiLlama.
While it operates on both the Solana and Blast blockchains, most of its success comes from Solana. Pump.fun makes it easy for users to launch new memecoins, and it ensures a secure trading environment where traders don’t have to worry about outright scams.
Pump.fun has surged in popularity over the past year with the increase in memecoin trading.
More than 550,000 tokens have been launched on the platform, reaching an all-time high on Monday with 19,261 tokens deployed and generating 8,347 SOL, or around $1.2 million, in revenue.
The number of tokens deployed represents the majority on Solana.
For example, on Tuesday, 22,664 new tokens were launched on Solana, and Pump.fun was responsible for 18,853 of them — about 83% of all tokens launched that day.
To date, Pump.fun has generated 140,300 SOL in revenue, worth about $21.5 million at current prices.
Pump.fun doesn’t have its own native token and hasn’t announced any plans to launch one, so all of its revenue goes directly to its team.
The platform produces revenue through a 1% fee on trades and a two SOL fee when coins reach enough liquidity to be listed on Raydium, a decentralised exchange on the Solana blockchain.
How it works
The main selling point of Pump.fun is its commitment to fair launches, ensuring that all tokens on the site have no presales or team allocations.
That setup prevents rug pulls — a type of scam where developers abandon a project and run off with investors’ funds — providing traders with a secure and trustworthy environment.
For traders, the process begins by visiting the official Pump.fun site and selecting a memecoin that catches their interest. Initially, trading is exclusive to Pump.fun, with the coin’s price following a bonding curve based on demand, meaning the price increases as more users purchase the coin.
Once a token’s market capitalization reaches $69,000, $12,000 in liquidity is added to Raydium and subsequently burned, ensuring the token’s stability and value.
On the Blast blockchain, trading remains on Pump.fun until the market cap reaches $420,000, at which point $30,000 of liquidity is added to the Thruster decentralised exchange and burned, allowing for broader trading opportunities.
This creates a system where traders can know what to expect, as each coin follows the same rules.
For users who wish to deploy a token on Pump.fun, the process is simple. All a user has to do is pick a name, ticker, and JPG image for the token. They can then instantly deploy the token on Pump.fun and anyone will be able to trade it.
Still, coins launched through Pump.fun don’t guarantee success. A majority of the memecoins launched through Pump.fun — and any other venue for that matter — lose most, if not all, of their value.
Ryan Celaj is a data correspondent at DL News. Got a tip? Email him at ryan@dlnews.com.
