Key Insights
One-click minting, bonding-curve “graduation,” and locked LPs centralized liquidity, elevating Pump.fun’s share to 75%-80% at its peak.
Launches and fees exhibit cyclical patterns. After a drop of 80% from January highs, activity rebounded by late August.
Competitors (LetsBonk, HeavenDEX, Raydium LaunchLab) can briefly shift share with fees or incentives, yet network effects frequently draw activity back.
Security incidents and U.S. class-action lawsuits (including RICO claims) loom as significant risks to sustainability.
Pump.fun is a launchpad on Solana, simplifying token launches to just a few clicks.
New tokens begin on a bonding-curve contract, selling approximately 800 million tokens in sequence. Once that supply is purchased, the token “graduates,” and trading transitions automatically to an automated market maker (AMM). Currently, this is Pump.fun’s own decentralized exchange (DEX), PumpSwap (earlier launches have moved to Raydium).
For creators, the expenses are minimal. There’s no minting fee, and graduation incurs only a small, fixed charge of 0.015 Solana (SOL) deducted from the token’s liquidity instead of a separate payment.
Upon graduation, PumpSwap burns the liquidity provider (LP) tokens tied to the trading pair, effectively securing liquidity so it cannot be manually withdrawn. Funds can only be moved through standard trading activities. This structure standardizes early price discovery for new memecoins while significantly lowering traditional rug-pull threats.
Did you know? Only a minuscule percentage of Pump.fun tokens ever “graduate.” In July and August 2025, the graduation rate lingered around 0.7%-0.8% of launches.
How Pump.fun Achieved 80% of Solana’s Memecoin Launches
Pump.fun’s supremacy arose from combining extremely low-friction token creation with a standardized liquidity path.
By routing new tokens through a bonding-curve graduation into an AMM, Pump.fun made early price discovery more reliable and diminished a major avenue for rug-pulls. As the Solana meme cycle surged, that design translated into dominance: By mid-August 2025, Pump.fun regained approximately 73%-74% of launchpad activity over a week-long span.
This lead wasn’t uncontested. In July, competitor LetsBonk briefly surpassed Pump.fun in terms of volume and revenue before momentum shifted back, proving that deployers quickly shift to wherever execution and liquidity appear most favorable.
Pump.fun solidified its dominance with two strategic policy changes: aggressive, revenue-funded 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 repurchases and eight-figure creator claims, which likely contributed to attracting deployers and recapturing momentum.
Throughout 2025, external tracking consistently showed 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 lower) during periods of hype. In Q2 2025, average fees dropped to about $0.01, while the median hovered around $0.001, despite a spike in January during the Official Trump (TRUMP) token frenzy.
A Brief Timeline of Market Share and Revenue
Jan. 24-26, 2025: Pump.fun achieves an all-time daily fee record of approximately $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 roughly 200/day by Feb. 26, marking an 80%+ decrease according to Dune-tracked cohorts.
May 16-17, 2024: An insider exploit of approximately $1.9 million necessitates a temporary halt; service resumes following fixes and a comprehensive post-mortem.
July 2025: New competitor LetsBonk briefly surpasses Pump.fun in 24-hour revenue and market share — the first substantial flip since Pump.fun’s emergence.
Aug. 8, 2025: Pump.fun launches the “Glass Full Foundation” to support select listings during a revenue downturn.
Aug 11-21, 2025: Market share rebounds to around 74% on a seven-day basis, achieving a record week at $13.5 million and multibillion weekly volumes. Some trackers show intraday peaks close to 90% as competitors fade.
Aug. 20, 2025: Cumulative fees exceed $800 million, highlighting the scale of Pump.fun’s model despite fluctuations.
September 2025: Under Project Ascend, creators claim over $16 million, while the team continues aggressive buybacks — widely recognized as aiding in reconstructing momentum.
Pump.fun’s dominance is cyclical yet robust. When sentiment declines, launches and fees sharply plummet. When incentives and liquidity improve, its share tends to rebound — often landing in the 70%-80% range on weekly metrics.
Competitors and the “Anti-Pump” Strategy
Rivals have attempted to compete on economics and liquidity. As mentioned earlier, LetsBonk briefly outshined Pump.fun in July, with some trackers indicating it was ahead in market share before Pump.fun reclaimed the lead in August. Coverage noted this as Pump.fun “fending off” a credible challenge.
Raydium LaunchLab positioned itself as the in-house alternative after Pump.fun ceased transitioning pools to Raydium and introduced PumpSwap. LaunchLab capitalized on Raydium’s native liquidity infrastructure — directly migrating new tokens into Raydium AMM pools — to attract creators and algorithmic traders searching for deep, established liquidity.
A newer competitor, Heaven (HeavenDEX), implemented a “give-it-back” approach that burns 100% of platform revenues and, for a time, accounted for around 15% of daily launch activity. It marketed itself as the most formidable rival to Pump.fun’s model during the summer share battles.
Ultimately, switching costs are minimal. Deployers transition to whichever platform provides the best blend of fees, incentives, and post-graduation liquidity. When competitors reduce fees or enhance rewards, market share can shift rapidly.
Security, Legal Risks, and Market Cycles
Pump.fun has encountered various challenges.
Security Incidents
Pump.fun has experienced notable security breaches. In May 2024, a former employee exploited privileged access to withdraw roughly $1.9 million, leading to a temporary trading suspension and the redeployment of the contract, with the team asserting that the contracts remained secure. On Feb. 26, 2025, its official X account was hijacked to promote a fraudulent “PUMP” token — underscoring social-engineering vulnerabilities in memecoin platforms.
Legal Challenges
Multiple U.S. civil actions allege that Pump.fun facilitated the sale of unregistered securities. A consolidated amended complaint filed in July 2025 introduced RICO (Racketeer Influenced and Corrupt Organizations Act) claims and new defendants. The outcomes remain uncertain, but the litigation could reshape how launchpads handle listings, disclosures, and revenue programs.
Cyclical Demand
As noted, launch counts and fee revenues reflect the risk appetite of retail investors. Following a strong start to 2025, July revenue fell to around $25 million, approximately 80% below January’s peak, before activity surged again later in the summer. Interest in memecoins fluctuates naturally over time.
Reputation Risk
Scrutiny of memecoins as pump-and-dump schemes continues. In one instance, a Wired reporter’s compromised X account was used to create a Pump.fun token and cash out in mere minutes — increasing pressure on platforms to enhance account security, tighten verification processes, and deter opportunistic launches.
Did you know? One compliance firm estimated that around 98%-99% of Pump.fun tokens align with pump-and-dump/rug-pull patterns — a claim Pump.fun contested.
Can Pump.fun Maintain Its Advantage?
If the Cycle Continues
Pump.fun’s August resurgence to approximately three-quarters of new Solana launches indicates that the core cycle — low friction, standardized “graduation” liquidity, and trader concentration — remains intact. If buybacks and creator incentives continue to strengthen that cycle, dominance may persist even during slower phases.
If Momentum Wanes
July illustrated how quickly momentum can turn when a competitor undercuts fees or attracts deployer bots. The ongoing legal battles introduce another layer of uncertainty and could lead to shifts in listings, disclosures, or revenue strategies.
Key Metrics to Monitor
Launchpad Share (Weekly): Track Pump.fun’s share compared to rivals for “graduated” tokens and trading volumes. A steady 65%-80% range suggests its defenses are solid; consistent declines may indicate erosion.
Buyback and Incentive Spending: Observe weekly buybacks and creator payouts. Ongoing and visible support commonly precedes market share recoveries.
Fees and Graduation Policies: Any changes to creation or graduation fees — or liquidity management — can swiftly influence deployer behavior.
Solana Environment: Monitor DEX volume and total value locked (TVL). Reduced liquidity can diminish post-graduation depth and trader retention.
Legal Developments: Keep track of progress in the consolidated class action. Negative rulings could restrict growth avenues or necessitate operational adjustments.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct thorough research before making choices.
