A new report from DeFiLlama reveals that Pump.fun, a launchpad on Solana for creating meme coins, has surpassed other protocols in generating fees on both Solana and Ethereum.
Pump.fun Generates More Fees Than Ethereum
According to DeFiLlama, Pump.fun amassed $5.3 million in fees in a single day, nearly double the $2.3 million earned by Lido, a prominent liquidity staking platform on Ethereum. This surge in fees is notable, as Pump.fun outperformed Ethereum, a network known for its high gas fees, which only generated $1.67 million in fees during the same period.
Moreover, Solana saw $1.32 million in fees distributed to validators for transfers and smart contract deployments. Pump.fun’s popularity has surpassed that of Tron, a key player in USDT transfers, as Tron only generated $1.15 million in fees in the last day.
The spike in Pump.fun’s popularity and the resulting increase in on-chain gas fees can be attributed to its user-friendly platform, enabling users to create and trade tokens quickly and affordably, driving the surge in meme coin activity on Solana.
Plans To Make Token Minting Successful
Despite Pump.fun’s success in fee generation, research indicates that less than 0.002% of tokens launched on the platform reach a $1 million market cap. Only 41 out of the numerous meme coins launched maintained a market cap of $1 million for a few weeks. This poor performance is often due to the lack of intrinsic value in many meme coins, which are primarily created for entertainment purposes.
In response to these findings, Pump.fun announced plans to incentivize the creation of more successful tokens by eliminating fees for token deployment. Previously, users had to pay around $2 in SOL to create tokens, but now this fee is shifted to the first token buyer.
The objective is to encourage developers to progress their tokens through the crucial “bonding curve” stage, aiming to achieve a market cap above $70,000. Tokens that clear this stage will be listed on Raydium, with the issuer receiving 0.5 SOL as compensation.
