- On Monday, Pump.fun dethroned Ethereum in daily revenue for the first time in history.
- The protocol will be used to generate and trade meme coins on the Solana and Blast blockchains.
- The company has generated more than $51.3 million in revenue since its launch in January.
Meme coin generator Pump.fun surpassed Ethereum in daily revenue for the first time on Monday.
According to data from DefiLlama, Pump.fun’s total revenue of $1.99 million surpassed Ethereum’s daily revenue of $1.91 million, while Solana itself made $806,957 in a single day.
The protocol is used to create and trade meme coins on the Solana and Blast blockchains, although Solana is the most popular. Revenue comes from fees paid by users for using the platform.
The company has benefited from the meme coin trading frenzy that swept the crypto market earlier this year, particularly on Solana, the network that will power 85% of all new tokens traded on decentralized exchanges in 2024.
Pump.fun is popular because it requires no coding to create meme coins and is a secure platform that prevents “premature lag.”
Early lag is when a token creator removes liquidity shortly after issuing a token, leaving investors in the dark.
Despite suffering a $2 million hack in May, pump.fun has helped meme coin creators deploy more than 1.2 million tokens since its launch in January, with the protocol generating $51.3 million in revenue to date.
Meme coins are a large cryptocurrency sector worth $51.5 billion, according to data from CoinGecko. Leading meme coins include Dogecoin, Shiba Inu, and Pepe.
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Meme-inspired tokens have previously been animal-themed or based on popular internet memes, but now include tokens based on celebrities as well.
Celebrity-based tokens have often sparked controversy and may be subject to enforcement action by U.S. regulators in the future.
Ethereum creator Vitalik Buterin has criticized the celebrity meme coin culture, saying that creators should focus on projects that provide “some kind of public good” instead of enriching early adopters.
There are also tokens based on U.S. politicians, and their price fluctuations often reflect political sentiment.
Short Meme Coin
Most meme coins are only available for spot trading, with the exception of tokens like Dogecoin, Shiba Inu, Pepe and Brett, which have large enough market cap to be traded with leverage on multiple centralized exchanges.
But that will soon change, according to Solana-based platform MarginFi, which plans to introduce a protocol called mrgnswap that will allow traders to make leveraged long or short bets on meme coins.
Osato Aban Nomayo I'm a Nigeria-based DeFi correspondent covering DeFi and technology. If you have any tips or information for a story, osato@dlnews.com.
