Pump.fun reaches nearly $30M in July amid Solana memecoin boom

Pump.fun, a Solana-based marketplace that allows users to create and distribute their own tokens, attained a significant monthly revenue of $28.73 million in July, as reported by Entropia Intel on August 13. 

This comes after the memecoin’s daily revenue surpassed that of Ethereum, marking a significant milestone with $863,525 in earnings compared to Ethereum’s $552,355 on July 29.

Solana-based memecoins like WIF and BONK have gained popularity, and this is directly reflected in the record monthly revenues. Pump.fun appeal has attracted celebrities such as Andrew Tate and Iggy Azalea, who have launched their own tokens.

Experts weigh in on Memecoins

Market experts hold varying opinions on memecoins. Among those articulating a popular point of view is Franklin Templeton, an American trillion-dollar asset management firm. 

The firm noted that memecoins have appealed to many traders due to low fees and the potential for quick profits. Experts warn that tokens originating from internet memes “have no inherent value or utility.” Ki Joung Ju, the founder and CEO of the blockchain analytics firm CryptoQuant, believes that meme coins harm the crypto industry.

It’s frustrating to see billion-dollar-cap meme coins overshadow hardworking teams building legit products to advance this industry. Easy money can’t drive industry-wide progress.

Ki Joung Ju

Still, other analysts differ in opinions. According to crypto entrepreneur Arthur Hayes, it’s crucial to think twice before labelling memecoins as “stupid and valueless” since they can benefit blockchain ecosystems by attracting new users and developers.

Maartje Bus, VP of research at Messari, believes memecoins will remain a vital part of the crypto industry and potentially evolve into a new asset class. According to Bus, they “inadvertently” introduce newcomers to Web3 basics, including decentralized exchanges and crypto wallets, and bring people together in the blockchain space.

Pump.fun memecoins struggle to make it to DEXs

Reports show that most memecoins launched on Pump.fun fail to secure a listing on the first decentralized exchange (DEX) and are soon forgotten.

Dune Analytics data shows that the success rate of Pump.fun crypto tokens being listed on the Solana-based decentralized finance protocol Raydium stands at 1.41%. This rate has fluctuated between 1.21% and 1.41% since May. Its all-time high of 2.56% was reached on Feb. 16.

“The ‘graduation rate’ of coins on Pump.fun (those that made it to $69k and got listed on a dex) is stagnant around 1.4%,” Cinneamhain Ventures partner Adam Cochran commented in an Aug. 1 post on X.

Still, other commentators believe that the success rate doesn’t reflect the overall memecoin market. It just indicates how pump.fun makes it easy to create memecoins.

Pseudonymous crypto commentator, Bunjil, addressing their 56,900 X followers, stated, “Pump.fun didn’t ruin memecoins; it merely revealed the process behind them and made it much easier to produce these tokens.”