Essential Insights
One-click minting, bonding-curve “graduation,” and locked LPs concentrated liquidity helped propel Pump.fun’s market share to 75%-80% at its peak.
Launches and fees exhibit cyclical behavior. Following an 80% drop from January highs, activity rebounded by late August.
Competitors (LetsBonk, HeavenDEX, Raydium LaunchLab) can temporarily gain market share with fees or incentives, but network effects typically restore activity.
Security incidents and U.S. class-action lawsuits, including RICO claims, pose significant risks to sustainability.
Pump.fun is a Solana-native launchpad that simplifies token launching to just a few clicks.
New tokens start on a bonding-curve contract, where approximately 800 million tokens are sold sequentially. Once that supply is depleted, the token “graduates,” and trading is automatically transitioned to an automated market maker (AMM). Currently, this is Pump.fun’s own decentralized exchange (DEX), PumpSwap (earlier launches migrated to Raydium).
For creators, the expense is minimal. There are no minting fees, and graduation incurs only a small, fixed charge of 0.015 Solana (SOL) deducted from the token’s liquidity instead of as a separate payment.
Post-graduation, PumpSwap burns the liquidity provider (LP) tokens associated with the trading pair, effectively locking liquidity to prevent manual withdrawal. Funds can only be transferred through regular trading activity. This structure standardizes early price discovery for new memecoins while significantly reducing traditional rug-pull risks.
Interesting Fact: A mere fraction of Pump.fun tokens successfully “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 success stemmed from combining ultra-low-friction token creation with a standardized route to liquidity.
By channeling new tokens through bonding-curve graduation into an AMM, Pump.fun made early price discovery more reliable and curtailed one of the primary routes for creators to rug-pull. As the Solana meme cycle accelerated, this design translated into market dominance: By mid-August 2025, Pump.fun regained about 73%-74% of launchpad activity over a seven-day window.
This lead was contested. In July, the competitor LetsBonk briefly surpassed Pump.fun in terms of volume and revenue before the momentum shifted back (demonstrating that deployers quickly migrate to the best execution and liquidity).
Pump.fun solidified its lead with two strategic policy changes: aggressive, revenue-funded buybacks of the Pump.fun (PUMP) token (some weeks consuming over 90% of revenue) and a revamped creator-payout strategy under “Project Ascend.” Public disclosures indicate multimillion-dollar weekly repurchases and eight-figure creator claims, likely helping draw in deployers and regain momentum.
Throughout 2025, independent trackers consistently reported Pump.fun maintaining a 75%-80% share of “graduated” Solana launchpad tokens during market surges — a level it returned to in August after the dip in July.
Interesting Fact: Solana’s fees remained around pennies (or even less) during mania periods. 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 craze.
A Brief Timeline of Market Share and Revenues
Jan. 24-26, 2025: Pump.fun sets 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 nearly 1,200/day (Jan. 23-24) to around 200/day by Feb. 26, marking an 80%+ reduction based on Dune-tracked groups.
May 16-17, 2024: An insider exploit of roughly $1.9 million causes a temporary halt; service resumes after fixes and a thorough report.
July 2025: New competitor LetsBonk briefly surpasses Pump.fun in 24-hour revenue and market share — the first significant flip since Pump.fun’s emergence.
Aug. 8, 2025: Pump.fun initiates the “Glass Full Foundation” to support selected listings during a revenue downturn.
Aug. 11-21, 2025: Market share rebounds to about 74% on a seven-day basis, achieving a $13.5-million record week and multibillion weekly volumes. Some trackers display intraday peaks close to 90% as competitors fall off.
Aug. 20, 2025: Cumulative fees surpassed $800 million, highlighting the scale of Pump.fun’s model despite volatility.
September 2025: Under Project Ascend, creators claim over $16 million, while the team continues with aggressive buybacks — widely attributed with aiding traction recovery.
Pump.fun’s dominance is cyclical yet robust. When sentiment weakens, launches and fees experience steep declines. However, when incentives and liquidity improve, its market share usually rebounds — often falling within the 70%-80% range based on seven-day metrics.
Competitors and the “Anti-Pump” Approach
Raydium LaunchLab marketed itself as the in-house alternative after Pump.fun ceased graduating pools to Raydium and initiated PumpSwap. LaunchLab capitalized on Raydium’s native liquidity infrastructure — transferring new tokens directly into Raydium AMM pools — to attract creators and algorithmic traders seeking extensive, established liquidity.
A newer rival, Heaven (HeavenDEX), unveiled a “give-it-back” model that burns 100% of platform revenues and, for a while, managed about 15% of daily launch activity. It positioned itself as Pump.fun’s fiercest competitor during the summer market share contests.
Ultimately, switching costs are minimal. Deployers move to whichever platform offers the best combination of fees, incentives, and post-graduation liquidity. When competitors lower fees or enhance rewards, market share can shift rapidly.
Security, Legal Risks, and Market Cycles
Pump.fun has encountered several challenges.
Security Incidents
Pump.fun has experienced noteworthy security issues. In May 2024, a former employee exploited privileged access to withdraw approximately $1.9 million, resulting in a temporary trading pause and contract redeployment, with the team confirming the safety of the contracts. On Feb. 26, 2025, its official X account was compromised to promote a fake “PUMP” token — serving as a reminder of the social-engineering risks in memecoin platforms.
Legal Concerns
Several U.S. civil suits allege that Pump.fun facilitated the sale of unregistered securities. A consolidated amended complaint filed in July 2025 included RICO (Racketeer Influenced and Corrupt Organizations Act) accusations and new defendants. The outcomes remain unpredictable, but the litigation might transform how launchpads engage with listings, disclosures, and revenue programs.
Cyclical Demand
As noted, launch counts and fee revenues mirror retail risk appetites. After a strong beginning to 2025, July revenues dipped to around $25 million, nearly 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 persists. In one instance, a Wired reporter’s hacked X account was employed to create a Pump.fun token and cash out within minutes — intensifying pressure on platforms to enhance account security, tighten verification processes, and discourage opportunistic launches.
Interesting Fact: One compliance firm claimed that approximately 98%-99% of Pump.fun tokens fit pump-and-dump/rug-pull profiles — an evaluation Pump.fun rejected.
Can Pump.fun Maintain Its Advantage?
If the Flywheel Sustains
Pump.fun’s rebound in August to about three-quarters of new Solana launches indicates that the core loop — low friction, standardized “graduation” liquidity, and trader concentration — remains intact. If buybacks and creator incentives continue to bolster that cycle, dominance could endure even through slower periods.
If the Grip Weakens
July illustrated how swiftly momentum can shift when a competitor undercuts fees or attracts deployer bots. The ongoing litigation adds another layer of uncertainty that could prompt changes to listings, disclosures, or revenue frameworks.
Key Metrics to Monitor
Launchpad Share (Weekly): Monitor Pump.fun’s market share compared to rivals across “graduated” tokens and trading volumes. A stable 65%-80% range indicates its competitive advantage is intact; consistent declines suggest erosion.
Buyback and Incentive Spending: Observe weekly buybacks and creator payment rates. Continuous and visible support often precedes recoveries in market share.
Fees and Graduation Policy: Any changes to creation or graduation fees — or liquidity management — can quickly influence deployer behavior.
Solana Context: Keep an eye on DEX volumes and total value locked (TVL). Reduced liquidity limits post-graduation depth and trader retention.
Legal Developments: Track progress in the consolidated class action. Negative rulings could restrict growth opportunities or necessitate operational adjustments.
This article does not provide investment advice or recommendations. Each investment and trading decision carries risk, and readers are encouraged to conduct their own research before deciding.
