Memecoins on Pump.fun laughable headlines that are allowed to be seen in Raydium have gone down since February and have since been “stationary” at 1. 41% for months.
Most cryptocurrencies created on Solana’s memecoin tool, Pump.fun, never launch.
Dune Analytics data shows that the success rate of Pump.fun tokens making it to the Solana-based Raydium protocol is 1.41%, fluctuating between this and 1.21% since May, with an all-time high of 2.56% on Feb. 16.
“The ‘graduation rate’ of coins on Pump Fun (those that made it to $69k and got listed on a dex) is stagnant around 1.4%,” Adam Cochran, partner at Cinneamhain Ventures, shared his thoughts in an Aug. 1 X post.
Cochran also noted that no new coins have “truly reached” the $20 million Fully Dilated Valuation (FDV) mark, which measures the total value of a cryptocurrency if all coins were in circulation.
“This all suggests we’re finally rinsing out the meme cycle,” Cochran claimed.
“I didn’t realize how brutal the trenches actually were,” Crypto commentator and web3 developer Bread highlighted that out of 1.58 million tokens created, only 22,300 made it onto Raydium.
However, other commentators argue that the success rate doesn’t represent the entire memecoin market; it just shows how easy it is to create memecoins on Pump.fun.
“Pump fun didn’t ruin memecoins, it just pulled back the curtain on how the sausage is made and made it very easy to make the aforementioned sausage,” Pseudonymous crypto commentator Bunjil shared this with their 56,900 X followers.
Although only a few memecoins ever launch, the fees from those that do have been quite significant. Pump.fun charges a 1% fee on transactions until the token hits a certain market cap.
In some cases, Pump.fun’s revenue has even exceeded $3,142 from Ethereum.
On July 29, Pump.fun made about $864,000 in 24 hours, which was roughly 57% more than Ethereum’s $550,000 for the same period.
Memecoins on Pump.fun Gains Popularity with Celebrities
Pump has become popular among celebrities for creating and promoting memecoins. Since May, U.S.-based figures like Caitlyn Jenner, Iggy Azalea (Amethyst Kelly), and Jason Derulo (Jason Desrouleaux) have launched and promoted crypto tokens using their names and images.
The total market cap for memecoins is currently $44.94 billion, down 2.67% in the last 24 hours, according to CoinMarketCap. However, trading volume has risen by 27.29% to $4.48 billion.
Among the top 100 memecoins by market cap, Book of Memes (BOME) is the only one with a gain over the past week, increasing by 14.79% and trading at $0.00897, according to coinmarketcap data.
