Key takeaways
One-click minting, bonding-curve “graduation,” and locked LPs concentrated liquidity, pushing Pump.fun’s share to 75%-80% at its peak.
Launches and fees are cyclical. After a decline of 80% from January peaks, activity rebounded by late August.
Competitors (LetsBonk, HeavenDEX, Raydium LaunchLab) can briefly capture market share with fees or incentives, but network effects typically bring activity back.
Security breaches and US class-action lawsuits (including RICO claims) pose significant risks to longevity.
Pump.fun is a Solana-native launchpad that simplifies token launches to just a few clicks.
New tokens initiate on a bonding-curve contract, selling approximately 800 million tokens sequentially. Once that supply is sold out, the token “graduates,” and trading transitions automatically to an automated market maker (AMM). Currently, that’s Pump.fun’s own decentralized exchange (DEX), PumpSwap (previous launches have migrated to Raydium).
For creators, the cost is negligible. There’s no minting fee, and graduation incurs only a nominal fixed charge of 0.015 Solana (SOL), deducted from the token’s liquidity rather than as a separate payment.
After graduation, PumpSwap burns the liquidity provider (LP) tokens associated with the trading pair, effectively locking liquidity to prevent manual withdrawal. Funds can only circulate through regular trading activity. This approach standardizes early price discovery for new memecoins while significantly minimizing traditional rug-pull risks.
Did you know? A minuscule portion of Pump.fun tokens ever “graduate.” In July and August 2025, the graduation rate averaged around 0.7%-0.8% of launches.
How Pump.fun captured 80% of Solana’s memecoin launches
Pump.fun’s supremacy stemmed from a combination of ultra-low-friction token creation and a standardized route to liquidity.
By directing new tokens through a bonding-curve graduation into an AMM, Pump.fun rendered early price discovery more reliable and alleviated a primary method by which creators could rug-pull. As the Solana meme cycle intensified, this design translated to dominance: By mid-August 2025, Pump.fun reclaimed approximately 73%-74% of launchpad activity over a seven-day period.
The lead was not uncontested. In July, competitor LetsBonk temporarily surpassed Pump.fun in volume and revenue before momentum shifted back (demonstrating that deployers rapidly migrate to where execution and liquidity seem optimal).
Pump.fun solidified its dominance with two strategic policy changes: Aggressive, revenue-backed buybacks of the Pump.fun (PUMP) token (in some weeks consuming over 90% of revenue) and a revamped creator-payout scheme under “Project Ascend.” Public disclosures indicate multimillion-dollar weekly buybacks and eight-figure creator claims, likely contributing to attracting deployers and regaining momentum.
Throughout 2025, external trackers consistently reported Pump.fun maintaining around a 75%-80% share of “graduated” Solana launchpad tokens during market upswings — a level it returned to in August following July’s dip.
Did you know? Solana’s fees remained near pennies (or even less) during periods of activity. In Q2 2025, average fees dropped to approximately $0.01, while the median hovered around $0.001, despite a January spike during the Official Trump (TRUMP) token frenzy.
A quick timeline of share and revenues
Jan. 24-26, 2025: Pump.fun achieves an all-time daily fee record of around $15.4 million as Solana’s meme season peaks.
Late January-Feb. 26, 2025: Daily launches decline from about 1,200/day (Jan. 23-24) to approximately 200/day by Feb. 26, marking an 80%+ decrease based on Dune-tracked groups.
May 16-17, 2024: An insider exploit of around $1.9 million necessitates a temporary halt; service resumes post-fixes and a detailed post-mortem.
July 2025: New contender LetsBonk briefly eclipses Pump.fun in 24-hour revenue and market share — the first significant flip since Pump.fun’s rise.
Aug. 8, 2025: Pump.fun launches the “Glass Full Foundation” to assist selected listings during a revenue decline.
Aug 11-21, 2025: Market share rebounds to around 74% on a seven-day basis, achieving a $13.5-million record week and multibillion weekly volumes. Some trackers indicate intraday highs near 90% as competitors diminish.
Aug. 20, 2025: Cumulative fees exceed $800 million, highlighting the extent of Pump.fun’s model despite volatility.
September 2025: Under Project Ascend, creators claim over $16 million while the team continues aggressive buybacks — widely regarded as instrumental in regaining traction.
Pump.fun’s dominance is cyclical yet robust. When sentiment wanes, launches and fees plummet sharply. As incentives and liquidity improve, its share typically rebounds — often landing in the 70%-80% range on seven-day metrics.
Rivals and the “anti-Pump” pitch
Competitors have sought to compete on economics and liquidity. As previously mentioned, LetsBonk momentarily captured attention in July, with some trackers indicating it led in market share before Pump.fun reclaimed dominance in August. Reports described it as Pump.fun “fending off” a credible challenge.
Raydium LaunchLab positioned itself as the in-house alternative after Pump.fun ceased graduating pools to Raydium and launched PumpSwap. LaunchLab utilized Raydium’s native liquidity infrastructure — migrating new tokens directly into Raydium AMM pools — to attract creators and algorithmic traders seeking deep, established liquidity.
A newer competitor, Heaven (HeavenDEX), introduced a “give-it-back” model that burns 100% of platform revenues and, for a time, managed about 15% of daily launch activity. It asserted itself as a formidable rival to Pump.fun’s model during the summer market share battles.
Ultimately, switching costs are minimal. Deployers transition to whichever platform offers the best mix of fees, incentives, and post-graduation liquidity. When competitors lower fees or enhance rewards, market share can shift rapidly.
Security, legal risk, and market cycles
Pump.fun has encountered its share of difficulties.
Security incidents
Pump.fun has experienced significant security incidents. In May 2024, a former employee exploited privileged access to withdraw around $1.9 million, leading to a brief trading suspension and contract redeployment, with the team asserting the contracts remained secure. On Feb. 26, 2025, its official X account was compromised to promote a fraudulent “PUMP” token — highlighting social-engineering vulnerabilities in memecoin platforms.
Legal overhang
Numerous US civil actions assert that Pump.fun enabled the sale of unregistered securities. A consolidated amended complaint filed in July 2025 included RICO (Racketeer Influenced and Corrupt Organizations Act) claims and new defendants. The outcomes remain uncertain, but the litigation could transform how launchpads handle listings, disclosures, and revenue strategies.
Cyclical demand
As noted, launch counts and fee revenues reflect retail risk appetite. Following a strong start to 2025, July revenue dipped to approximately $25 million, about 80% lower than January’s peak, before activity surged later in the summer. Interest in memecoins naturally fluctuates over time.
Reputation risk
Scrutiny of memecoins as pump-and-dump schemes persists. In one instance, a Wired reporter’s hacked X account was utilized to create a Pump.fun token and cash out within minutes — increasing pressure on platforms to enhance account security, tighten verifications, and discourage opportunistic launches.
Did you know? One compliance firm claimed that about 98%-99% of Pump.fun tokens align with pump-and-dump/rug-pull patterns — a claim Pump.fun contested.
Can Pump.fun maintain its edge?
If the flywheel continues
Pump.fun’s August rebound to roughly three-quarters of new Solana launches indicates that the core loop — low friction, standardized “graduation” liquidity, and concentration of traders — remains intact. If buybacks and creator incentives continue to support that cycle, dominance may persist even through slower periods.
If the grip loosens
July illustrated how swiftly momentum can shift when a rival reduces fees or attracts deployer bots. The ongoing litigation adds another layer of uncertainty and could prompt adjustments to listings, disclosures, or revenue programs.
Key metrics to monitor
Launchpad share (weekly): Monitor Pump.fun’s share against competitors across “graduated” tokens and trading volumes. A stable 65%-80% range indicates that its moat is holding; consistent declines suggest erosion.
Buyback and incentive expenditure: Observe weekly buybacks and creator payouts. Sustained and visible support often precedes recoveries in market share.
Fees and graduation policy: Any changes to creation or graduation fees — or how liquidity is managed — can swiftly affect deployer behavior.
Solana backdrop: Monitor DEX volume and total value locked (TVL). Lower liquidity diminishes post-graduation depth and trader retention.
Legal milestones: Keep abreast of developments in the consolidated class action. Unfavorable rulings could restrict growth opportunities or prompt operational changes.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers should carry out their own research before making a choice.
