The revenue of the Solana-based memecoin creator platform Pump.fun has taken a significant hit, decreasing by 48.7%. According to DeFiLlama, the platform’s revenue skyrocketed to $5.31 million on November 24 but plummeted to $3.76 million the next day after the community backlash and halt of the controversial livestream feature.
As you may recall, Pump.fun’s live streams had gotten wild, with some token developers even harming themselves on stream for money. The halt on the livestream feature has likely led to a decline in user engagement and, subsequently, revenue. Since then, The platform has maintained a daily revenue range of over $3.5 million.
Regarding this rapid turn of events, DL News reported that Min Jung, a research analyst at Presto Labs, said:
“Many users have expressed fatigue with Pump.fun memecoins, and negative sentiment towards the platform has reached an all-time high.”
What Drives Pump.fun’s Revenue?
Interestingly, during the X (formerly Twitter) Space session last month, Pump.fun announced plans to launch a native token. The team further revealed that a portion of the token supply will be airdropped to early adopters to reward them for their support. However, no specific timeline for the token launch was provided.
The news was met with excitement within the community, with some believing that a well-executed airdrop could greatly enhance liquidity. Some crypto analysts have suggested that the airdrop should target top traders, developers, and other key participants, using metrics like trading volume and token performance to determine eligibility.
The anticipation of a potential airdrop drew many Solana users to Pump.fun, leading to increased volume and revenue for the token launch platform. However, the momentum was disrupted by the livestream saga.
Additionally, like the crypto market, the platform has been impacted by the United States political climate. Many Nationfi tokens, often associated with U.S. politics, have been created using Pump.fun. Other generated tokens like GOAT and PNUT have been listed in top exchanges, further increasing users’ interest in the platform.
Pump.fun Keeps Growing
Data from CoinMarketCap reveals that Pump.fun’s ecosystem tokens have reached a market capitalization of over $5 billion. The platform has also become the third-highest project by monthly revenue, closely approaching the levels of industry giants like Circle.
The team behind Pump.fun has consistently cashed out its revenue of over 1.52 million SOL, worth approximately $362 million. This significant revenue stream hints at the platform’s popularity and success in the crypto industry.
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