While memecoins may draw in new blockchain users, the majority of profits predominantly benefit the platforms that create and facilitate the trading of these tokens, according to a recent report from Galaxy Research.
The study published on Wednesday reveals that, despite most traders facing losses in this short-term gambling environment, infrastructure providers such as launchpads, decentralized exchanges, and trading bots are raking in millions by enabling memecoin trades.
Among the key beneficiaries is Solana’s Pump.fun, a memecoin launchpad that launched in early 2024, with tokens on the platform amounting to a total fully diluted market value of $4.8 billion, according to the report.
Galaxy noted that of the 32 million tokens on Solana, nearly 13 million have come through Pump.fun, representing a remarkable 300% surge in less than two years. “The platform has effectively industrialized token creation on Solana,” stated Galaxy Research.
The report also indicates that the median hold times for Solana memecoins have plummeted to around 100 seconds, down from 300 seconds a year prior, emphasizing the prevalence of bots and scalpers in memecoin trading.
A trading platform called Axiom has amassed over $200 million in fees with fewer than ten employees, capitalizing on memecoin activity. “Axiom […] has scaled to millions in monthly revenues by collecting fees from memecoin traders,” it reported. Other tools like BONKbot and Trojan generate income by charging users for automatic snipe services on newly launched tokens.
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Pump.fun continues to operate
Despite the limited utility of memecoins beyond cultural significance, platforms like Pump.fun keep expanding.
On July 12, the platform introduced its own token, PUMP, during a sale that garnered $500 million in under 12 minutes. The initial coin offering (ICO) consisted of 125 billion tokens.
According to data from DefiLlama, from August 11 to August 17, Pump.fun generated $13.48 million in revenue, marking its highest weekly total since February.
Cointelegraph reported that Pump.fun processed over $1 billion in trading volume on September 14, reaching $1.02 billion, following $942 million the previous day.
In the past 30 days, metrics from DefiLlama indicate that the memecoin launchpad has accrued approximately $120 million in fees.
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