Solana’s Pump.fun platform has generated over $100 million in revenue since its launch in January, but users are unsure if the milestone is good for cryptocurrencies and decentralized finance.
It took 217 days, or nearly seven months, for the Solana (SOL) memecoin to launch. achieves Pump.fun has achieved record revenue, beating DeFi giants like Ethena (ENA), Pancakeswap (CAKE), and even Curve Finance (CRV) in this feat.
The protocol allows anyone to create meme-inspired tokens on the Solana blockchain. Once developers launch a coin, the cryptocurrency will trade on a peg curve until its market cap exceeds $69,000.
Solana has become the go-to memecoin chain in DeFi since the service debuted in early 2024. At one point, developers created over 500,000 memecoins through the platform in a single month. The launchpad paved the way for oversaturation in the Solana ecosystem as creating tokens became as easy as a few clicks. Crypto.news research found that less than 1% of Pump.fun wallets generated a profit of $1,000 or more.
Cryptocurrency users are unhappy with Pump.fun’s success
Pump.fun may have reached $100 million in revenue in record time, but many have questioned whether this is a net positive development for DeFi and the entire cryptocurrency industry.
The biggest concern was the sustainability of the protocol and its promotion of the casino-like underside of digital assets.
One user alleged that the platform fueled money grabs by celebrities who didn’t align with crypto ethics. Numerous public figures, from Andrew Tate to Iggy Azalea, have launched Pump.fun memecoins. Most of the tokens have crashed well below their peaks.
Questions remain about the regulatory scrutiny of the Solana platform, with agencies like the U.S. Securities and Exchange Commission insisting that SOL itself, and possibly its ecosystem, violates federal securities laws.