Things to Know About the Success of the Pump.Fun Memecoin Platform
In the coming days, Pump.Fun, a memecoin generator on Solana, is predicted to generate more than $100 million in total revenue.
- DeFiLlama statistics indicate that the platform’s total revenue increased from $50 million at the end of June to $94.5 million at this time.
- By making use of Solana’s cheap transaction costs, the platform has helped generate approximately 1.8 million meme coins since its introduction in January 2024.
Meme Coin Boom on Pump.Fun Platform: Low Entry Fee Spurs Rapid Growth
Pump.Fun’s low entry barrier (about $2 to create a token) and concentration on meme coins—which are frequently quite volatile and spark a lot of trading activity, even if it’s fleeting—have contributed to its fast rise. Pump.Fun started paying token creators 0.5 SOL ($80) when their tokens crossed the bonding curve and recently abolished the costs associated with deploying user tokens.
The number of tokens created on the network has increased even more as a result of this modification. But other users have also voiced dissatisfaction about the caliber of new projects that are introduced on the platform and the short-term worthlessness of hundreds of side projects involving meme coins.
Pump.Fun’s Bonding Curve Model: Meme Coin Prices and Market Dynamics
A coin’s price rises in response to an increase in demand, according to the bonding curve model used by Pump.Fun. Costs start at a base rate and go up when more transactions are made. This gives both buyers and sellers a predictable pricing progression.
$12,000 worth of liquidity is sent to Raydium, a decentralized exchange, and burned there until the cumulative purchases on the bonding curve reach a market capitalization of $69,000. Slightly less than 1.5% of the 1.8 million tokens created with Pump.Fun has been listed on Raydium.
On every transaction made on its platform, Pump.Fun charges a 1% fee. For both buying and selling meme coins, there is a fee. These costs can quickly mount up due to the large volume of token production and trading.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment