Anika Begay
In a new development, DeFiLlama’s on-chain data shows that Pump.fun, a launch pad on Solana that allows users to create and distribute tokens, primarily meme coins, generates more fees than some of the major protocols on Solana and Ethereum.
Pump.fun generates more fees than Ethereum
DeFiLlama data shows that the launchpad has generated $5.3 million in fees in the last day alone. At that rate, it’s nearly double the $2.3 million raised by Lido, a leading Ethereum liquidity staking platform.
Interestingly, Pump.fun generates more fees than Ethereum, a network known for charging relatively higher gas fees than all other blockchains. Over the past day, Ethereum has generated $1.67 million in fees.
Meanwhile, Solana transfers and the implementation of on-chain smart contracts have seen the platform distribute $1.32 million in fees to validators. Interest in Pump.fun has also seen the network surpass Tron, which dominates USDT transfers. Over the past day, Tron has generated $1.15 million in fees.
The growing interest in Pump.fun, which explains the spike in on-chain gas fees, could be due to its value proposition. Through this launchpad, users can not only create but also instantly exchange tokens for less than $2 with “a single click,” as they describe it on X. It is the ease of use and the spike in popularity of meme coins on Solana that has catapulted Pump.fun to the forefront of cryptocurrency.
Plans to Make Token Minting a Success
Even though Pump.fun is flying, generating millions in commissions, research findings point to other problems. It is emerging that less than 0.002% of all tokens distributed by the launchpad ever reach a market cap of $1 million.
Of the millions of meme coins launched, only 41 have maintained a market cap of $1 million for more than a few weeks. The disappointing performance may be due to the fact that most of the meme coins launched offer no value and are simply for entertainment.
In a new update On August 9, Pump.fun stated that it intends to make changes and incentivize the creation of more successful tokens. The launchpad will therefore not charge users any fees when they issue a new token.
In the previous arrangement, users had to pay about $2 in SOL to create tokens. This fee is now passed on to the first buyer of the token.
Overall, the goal is to encourage developers to at least push their tokens through the critical “bonding curve” stage, bringing their market cap above at least $70,000. If the token passes this stage, it will automatically be listed on Raydium while the issuer receives 0.5 SOL.
Feature image from Canva, chart from TradingView
