Pump.Fun, a relatively new cryptocurrency launchpad and marketplace on the Solana blockchain, has surpassed the Ethereum blockchain in terms of transaction fees generated within the past year. Data from Token Terminal shows that Pump.Fun has reached an impressive $296 million in yearly fees, surpassing Ethereum by over $50 million.
Remarkably, many crypto users and token issuers have switched to the network due to the low transaction fees on the Solana blockchain. Thus, most newly-launched cryptocurrencies and memecoins (cryptocurrencies created to follow internet trends and memes) were listed via PumpFun, a platform launched in January 2024.
Pump.Fun Usage Surges
The past few months in the crypto ecosystem have been filled with the launch of thousands of memecoins. Meanwhile, PumpFun stands as a suitable platform for memecoin enthusiasts as it provides a user-friendly, swift, and innovative platform for token creation and instant trading. Remarkably, this has added to the substantial increase in its transaction fees.
On the other hand, Ethereum’s blockchain generates fees from transaction processing, smart contract execution, and decentralized application (dApp) interactions. However, it has only achieved $244 million from trading fees.
Pump.Fun, surpassing Ethereum in transaction fees highlights memecoin dominance and the importance of new token launches in the crypto market. The trend is not ending soon as new investors and traders enter the ecosystem daily and seek to explore opportunities in the memecoin space despite its volatility and price fluctuation.
Fees Surge Despite Hack
In a recent turn of events, hackers compromised Pump.Fun’s official X account via a phishing link that posed as a real message from a reliable partner. Thus, the exploiter shared deceptive messages concerning a new token launch to the community. Thankfully, the PumpFun community warned users of the danger before much damage was incurred and fixed the error.
Following the incident, PumpFun reinstituted its four-month-paused live-streaming feature for just 5% of its users. The service was taken down after concerns filled the internet about abusive content and safety issues. Consequently, the resumption comes with strict regulations and prohibitions, including deleting any content that breaks the live-streaming rules.
Meanwhile, Solana-based decentralized exchange (DEX) Raydium has introduced its token creator platform, LaunchLab. It features the Burn & Earn mechanism, fee allocation, and referral program, which makes it a strong rival for PumpFun.
