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Pump.fun has recently crossed over $100 million in revenue since its launch in January, setting a new record for any project in the cryptocurrency ecosystem despite experiencing a decline in revenue in the past weeks.
Achieving this milestone in seven months is 34 days less than it took for the next fastest-growing protocol, Ethena to hit the same metrics according to Ryan Watkins of Syncracy Capital.
Pumpdotfun is the fastest growing application by revenue in the history of the cryptoeconomy — $100M in revenue in just 217 days.
— Ryan Watkins (@RyanWatkins_) September 2, 2024
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
Pump.fun functions as a memecoin launchpad, allowing anyone to create a memecoin with just 0.02 SOL, approximately $2.7 at the time of writing, enabling users to create and experiment at an affordable cost.
By making sure every token undergoes a fair launch with no presale and team allocation, Pump.fun ensures token safety by preventing rug pulls.
"Pump.fun revenue growth was partially due to it appealing best to retail speculators, but also because it charges the highest fees of any DEX on-chain", said Watkin as reported by Decrypt.
The platform generates revenue from charging a 1% fee on trades and a two SOL fee when coins receive ample liquidity to be listed on Raydium, a decentralized exchange (DEX) on the Solana blockchain.
Following adoption by fellow degens who created as many as 500,000 tokens on the platform in a month, pump's daily revenue at one point even surpassed the Ethereum network in early July according to Defilama.
However, last month, the platform announced a major change by removing fees charged to creators. Under the new policy, this cost is now borne by the first buyer, eliminating financial barriers for creators.
Perion Lim
This move came after the project experienced a significant drop in tokens launched on the platform according to Dune. Part of the decline in tokens could also be attributed to Tron's entrance into the memecoin space following the launch of Sun.pump on the Tron network which is similar to pump.fun on the Solana network.
