Solana-based meme coins are surging, with Pump.fun leading the pack. Here's the explanation behind the resurgence.
In a recent turn of events, Pump.fun has asserted its dominance over LetsBonk as the leading token launchpad on the Solana blockchain. This resurgence can be attributed to Pump.fun's focus on high volumes of token launches, increased user engagement, and a strategic token buyback program.
Pump.fun's strategy revolves around maximising token launch volumes, enhancing platform liquidity, implementing aggressive token buybacks, and fostering an extensive active user base. This approach has allowed Pump.fun to command about 91% of daily token listings on Solana, far surpassing LetsBonk’s mere 3% share.
One of the key factors behind Pump.fun's success is its high token launch volume. The platform has recently launched nearly 25,000 tokens, vastly outnumbering LetsBonk’s launches. Pump.fun's platform supports fast and mass deployment of meme tokens, which appeals to new creators.
Another significant factor is the revenue generated through swap fees. Pump.fun charges a 1% swap fee on token transactions, which has generated over $800 million in lifetime revenue and around $1.35 million daily recently—significantly ahead of LetsBonk’s daily revenue (~$250,000).
Pump.fun has also implemented a $33 million buyback for its native PUMP token to reduce circulating supply and improve token price outlook, providing investor confidence and market momentum.
Pump.fun boasts a larger user base and liquidity compared to LetsBonk. The platform has over 38,000 active users, compared to LetsBonk’s 633, reflecting greater market adoption and liquidity.
After briefly losing ground to LetsBonk in July, Pump.fun quickly recovered its lead by boosting activity and volume. Since then, Pump.fun accounted for 71% of all token launches on Solana on Tuesday.
In contrast, LetsBonk had earlier taken the lead by leveraging community engagement, strong weekly revenue, and token trading volume, but has struggled to maintain dominance amidst Pump.fun’s rapid resurgence.
The surge in Pump.fun's dominance follows the team injecting just shy of $1.7 million into the launchpad's ecosystem over the past five days through an initiative called the Glass Full Foundation. Pump.fun's own token, PUMP, has a market cap of $1.3 billion, surpassing Fartcoin.
Notable tokens launched on Pump.fun include Fartcoin, which is up 15% on the day to a $1.08 billion market capitalization, Comedian coin, which features viral banana artwork and has increased 24.3% over the past 24 hours, and Butthole Coin, which has risen 27.6% over the past 24 hours.
Despite a temporary price drop shortly after its token generation event, PUMP has since clawed back market share. On Wednesday, PUMP tokens rose 8% according to CoinGecko, and PUMP temporarily traded at its initial coin offering price of $0.004.
The Glass Full Foundation aims to "inject significant liquidity" into tokens within the Pump.fun ecosystem, particularly those with "diehard cults." Tokabu, a token for original character The Spirit of Gambling, has pumped over 100% from a $36.5 million market cap to $73.5 million over the weekend.
The Pump.fun X account has started sharing one-off memes, artist-commissioned posts, and reposts, marking a significant shift in its strategy, now openly supporting tokens created on its platform. In contrast, LetsBonk invested 1% of its revenue into the top coins within its ecosystem.
As Pump.fun continues to dominate the Solana blockchain, it remains to be seen how LetsBonk will respond to this resurgence. For now, Pump.fun's strategy of maximising token launch volumes, enhancing platform liquidity, implementing aggressive token buybacks, and fostering an extensive active user base has proven successful in reclaiming and sustaining leadership over LetsBonk as Solana’s premier memecoin launchpad.
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