Key takeaways
One-click minting, bonding-curve “graduation,” and locked LPs concentrated liquidity helped Pump.fun reach a peak market share of 75%-80%.
Activity sees cyclical trends; after an 80% decline from January peaks, it rebounded by late August.
Competitors (LetsBonk, HeavenDEX, Raydium LaunchLab) can temporarily shift market share through incentives, but prevailing network effects usually attract activity back.
Security breaches and US class-action litigation, 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 coins commence on a bonding-curve contract, selling around 800 million tokens sequentially. Once that supply is depleted, the token “graduates,” transitioning trading to an automated market maker (AMM). Currently, this is Pump.fun’s own DEX, PumpSwap (previous launches migrated to Raydium).
For creators, the costs are minimal. Minting is free, and graduation incurs only a minor fee of 0.015 Solana (SOL) taken from the token’s liquidity instead of a separate payment.
Post-graduation, PumpSwap burns the liquidity provider (LP) tokens associated with the trading pair, effectively locking liquidity against manual withdrawal. Funds can only circulate through standard trading. This setup standardizes early price discovery for new memecoins and significantly mitigates traditional rug-pull risks.
Did you know? A mere fraction of Pump.fun tokens ever “graduate.” In July and August 2025, graduation rates hovered around 0.7%-0.8% of launches.
How Pump.fun captured 80% of Solana’s memecoin launches
Pump.fun’s dominance stemmed from combining ultra-low-friction token creation with a standardized liquidity pathway.
By directing new tokens through a bonding-curve graduation into an AMM, Pump.fun made early price discovery more reliable and reduced the primary method of potential rug-pulls. As the Solana meme cycle gained traction, this design led to dominance: by mid-August 2025, Pump.fun reclaimed approximately 73%-74% of launchpad activity over a week.
This lead faced competition. In July, the challenger LetsBonk briefly surpassed Pump.fun in volume and revenue before momentum returned to Pump.fun (indicating that deployers rapidly migrate to the most effective platforms).
Pump.fun solidified its position with two strategic policy changes: aggressive, revenue-driven buybacks of the Pump.fun (PUMP) token (at times 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 attracting deployers and recapturing momentum.
Throughout 2025, external metrics consistently indicated Pump.fun maintaining around a 75%-80% share of “graduated” Solana launchpad tokens during market upswings — a level it returned to in August following the July decline.
Did you know? During market frenzies, Solana’s fees remained near pennies (or even lower). In Q2 2025, average fees dropped to about $0.01, with the median around $0.001, despite a January spike during the Official Trump (TRUMP) token spree.
A quick timeline of share and revenues
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, indicating an 80%+ drop per Dune-tracked cohorts.
May 16-17, 2024: An insider exploit of around $1.9 million leads to a temporary pause; services resume post-fixes and an in-depth post-mortem.
July 2025: The new rival LetsBonk briefly overtakes Pump.fun in 24-hour revenue and market share — marking the first significant flip since Pump.fun’s rise.
Aug. 8, 2025: Pump.fun initiates the “Glass Full Foundation” to bolster selected listings amid a revenue downturn.
Aug 11-21, 2025: Market share rebounds to around 74% over a week, achieving a record week of $13.5 million and multibillion-dollar weekly volumes. Some trackers report intraday peaks near 90% as competitors fade.
Aug. 20, 2025: Cumulative fees exceed $800 million, highlighting the robustness of Pump.fun’s model despite fluctuations.
September 2025: Under Project Ascend, creators claim over $16 million, while the team proceeds with aggressive buybacks — widely credited with helping regain traction.
Pump.fun’s dominance is both cyclical and resilient. When sentiment wanes, launches and fees decrease sharply. When incentives and liquidity enhance, its share usually rebounds — typically resting in the 70%-80% range on seven-day metrics.
Rivals and the “anti-Pump” pitch
Competitors have attempted to contend through economic and liquidity strategies. As previously noted, LetsBonk temporarily captured attention in July, with some trackers indicating it outperformed Pump.fun in market share before Pump.fun regained dominance in August. Coverage framed it as Pump.fun “countering” a substantial challenge.
Raydium LaunchLab emerged as the in-house alternative after Pump.fun ceased migrating pools to Raydium and introduced PumpSwap. LaunchLab utilized Raydium’s native liquidity framework — directly moving new tokens into Raydium AMM pools — to entice creators and algorithmic traders in search of deep, established liquidity.
A newer competitor, Heaven (HeavenDEX), launched a “give-it-back” model that burns 100% of platform revenues and, for a time, managed around 15% of daily launch activity. It established itself as a significant contender against Pump.fun’s model during the summer share conflicts.
Ultimately, switching costs remain low. Deployers transition to whichever platform provides the optimal balance of fees, incentives, and post-graduation liquidity. When competitors lower fees or increase rewards, market share can swiftly shift.
Security, legal risk and market cycles
Pump.fun has faced numerous challenges.
Security incidents
Pump.fun has experienced significant security breaches. In May 2024, a former employee exploited privileged access to withdraw approximately $1.9 million, resulting in a temporary trading suspension and contract redeployment, with the team asserting the safety of the contracts. On Feb. 26, 2025, its official X account was compromised to advertise a fraudulent “PUMP” token — highlighting social-engineering vulnerabilities in memecoin platforms.
Legal overhang
Several US civil lawsuits claim that Pump.fun facilitated the distribution of unregistered securities. A consolidated amended complaint filed in July 2025 introduced RICO (Racketeer Influenced and Corrupt Organizations Act) claims alongside new defendants. The outcomes are uncertain, but the litigation could transform how launchpads navigate listings, disclosures, and revenue models.
Cyclical demand
As previously mentioned, launch frequencies and fee revenues reflect retail risk preferences. Following a robust start to 2025, July revenue fell to around $25 million, approximately 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 potential pump-and-dump schemes has not abated. In one incident, a Wired reporter’s hacked X account was utilized to create a Pump.fun token and liquidate it within minutes — increasing pressure on platforms to enhance account security, tighten verification, and discourage opportunistic launches.
Did you know? A compliance firm claimed approximately 98%-99% of Pump.fun tokens fit pump-and-dump/rug-pull patterns — an assertion Pump.fun has disputed.
Can Pump.fun keep its edge?
If the flywheel holds
Pump.fun’s August recovery to nearly three-quarters of new Solana launches indicates that the core mechanism — low friction, standardized “graduation” liquidity, and trader concentration — remains intact. If buybacks and creator incentives continue to reinforce that cycle, dominance may endure even through slower periods.
If the grip slips
July illustrated how rapidly momentum can shift if a competitor lowers fees or attracts deployer bots. Ongoing legal challenges introduce another layer of uncertainty and could prompt changes to listings, disclosures, or revenue strategies.
Key metrics to watch
Launchpad share (weekly): Monitor Pump.fun’s share compared to competitors across “graduated” tokens and trading volumes. A consistent 65%-80% range suggests its competitive edge remains; persistent declines indicate erosion.
Buyback and incentive spend: Observe weekly buybacks and creator payouts. Sustained and observable support often prefaces recoveries in market share.
Fees and graduation policy: Modifications to creation or graduation fees — or liquidity management — can swiftly alter deployer behaviors.
Solana backdrop: Monitor DEX volume and total value locked (TVL). Diminished liquidity affects post-graduation depth and trader retention.
Legal milestones: Keep track of developments in the consolidated class action. Adverse outcomes could hinder growth avenues or necessitate operational adjustments.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
