Solana’s Pump.fun has surpassed $100 million in revenue since its launch in January, but users aren’t sure if the feat is good for crypto and decentralized finance.
It took 217 days, or about seven months, for Solana (SOL) launchpad to reach its record revenue. Pump.fun beat DeFi giants like Ethena (ENA), Pancakeswap (CAKE), and even Curve Finance (CRV) to reach this milestone.
The protocol allows anyone to create meme-inspired tokens on the Solana blockchain. Once developers launch a cryptocurrency, it trades on a bonding curve until it exceeds a market cap of $69,000.
Solana became the go-to memecoin chain in DeFi after launching the service in early 2024. At one point, developers created over 500,000 memecoins through the platform in a month. This launchpad paved the way for an oversaturation of the Solana ecosystem as token creation became easier than a few clicks. A study by crypto.news found that less than 1% of Pump.fun wallets yielded $1,000 or more.
Cryptocurrency users unhappy with Pump.fun’s success
Pump.fun may have hit $100 million in revenue in record time, but many are wondering if this is a net positive development for DeFi and the entire cryptocurrency industry.
The biggest concern came from the sustainability of the protocol and its promotion on the casino side of digital assets.
One user claimed the platform was fueling money grabs by celebrities who didn’t align with crypto ethics. Several public figures, from Andrew Tate to Iggy Azalea, launched Pump.fun memecoins. Most of the tokens have crashed well below their highs.
Questions also remain over regulatory oversight of the Solana-based platform, with agencies like the U.S. Securities and Exchange Commission insisting that SOL itself, and possibly its ecosystem, violate federal securities laws.
