Pump.fun, a memecoin launchpad that launched in January 2024, has quickly become one of the hottest platforms in the crypto industry, recently surpassing $100 million in total cumulative revenue for its developers.

According to a dashboard maintained by Dune Analytics, this figure reflects the platform’s remarkable growth, along with users’ interest. Pump.fun obtains its revenue from a 1% charge on each transaction, which is quite appealing to the developers. However, to sustain the future growth of the platform, user engagement in meme creation and memecoin trading has to be consistent.

Pump.fun Thrives on Memecoin Speculation, Polymarket on Data-Driven Predictions

Pump.fun and Polymarket are two crypto-based platforms that are primarily based on speculation, but function in different ways. Pump.fun lets users bet on memecoins and assets with only branding and public value added to them without other application value. This means it is difficult to determine which coins will be successful in the future. On the other hand, Polymarket is a decentralized prediction market where users bet on positions using available data, to predict different events like political elections or how often Elon Musk tweets.

As much as the two platforms may differ they have both recorded tremendous growth in the recent past. This is because Pump.fun has eliminated the cost of deploying a token, thus expanding the growth of new memecoins. On September 1, Pump.fun sold 254,074 $SOLs which is equivalent to $40.26 million at an average price of $158 as reported by Lookonchain. This figure is a clear indication of the active market that the platform has within users.

Pump.fun has recently experienced some problems. On Friday, the platform showed its second-lowest sales result since May 24, which causes questions about how it can attract users to develop and sell memecoins further. Such a decline in daily revenues implies that retaining customers will also be a significant factor in determining Pump.fun’s future success.

However, it remains to be seen whether Pump.fun will be able to continue its success and not turn into another failed platform, like friend.tech. To avoid the same fate, Pump.fun will need to constantly innovate and look for ways to continue getting users’ interest.

 
Image by Aura Finance from Pixabay
 

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