Pump.fun’s Meme Token Factory Revenue Drops by 30%

The daily commission volume on the Solana-based meme token launch platform Pump.fun has decreased by 30%, as noted by The Block.

During the workweek from June 10 to 14, the platform’s average daily income was approximately $870,000. This figure has fallen to $605,000 in the current five-day period.

Experts from the publication linked the decline in Pump.fun’s revenue to adverse market conditions and the price dynamics of SOL. On June 24, Bitcoin once again fell below the $62,000 level, while Solana’s native token has dropped by more than 18% over the past 30 days (CoinGecko).

These factors reduce investors’ risk appetite, which is particularly crucial for platforms like Pump.fun. The meme coins launched via the service are highly speculative, attracting users with the potential for quick profits, analysts believe. However, traders also quickly exit positions in assets when market conditions change.

The decline in Pump.fun’s revenue may indicate that the platform and the volume of tokens being launched have reached saturation levels, experts suggested. Considering the vast number of new coins being deployed on the platform, it may be struggling to handle this flow, they added.

For the past two months, Pump.fun has accounted for an average of 35% of Solana’s total commission revenue. This figure excludes fees from third-party DEX and other trading services from operations with tokens launched on the platform.

Given the speculative nature of the assets, such dependence poses risks for the blockchain. User activity and network fee revenue could plummet if the hype around meme coins subsides, experts emphasized.

“A well-balanced blockchain platform ideally supports various applications and protocols, ensuring that it does not become overly reliant on any single source of activity or income,” they concluded.

Earlier, the cryptocurrency data service DEX Screener launched a competing meme coin creation platform on Solana called Moonshot.