pump.fun Insight: Only 3% of Users Profit Over $1,000

What are the real statistics on the pump.fun platform? What is the “graduation rate” of tokens? How many tokens reach a market cap of millions or tens of millions of dollars? What are the actual profits of users? This article will reveal all.

About pump.fun Platform

In simple terms, pump.fun allows for the fair launch of Meme tokens with no presales or team allocations. These tokens trade along the platform’s bonding curve during their initial launch. Once a token surpasses the crucial $69,000 market cap threshold, $12,000 of liquidity is deposited into Raydium and burned.

As for fees, the platform charges a 1% redemption fee during the issuance of Meme tokens until they reach a market cap of $69,000. Before August, token creators were required to pay a creation fee of around 0.02 SOL and a migration fee of 2 SOL once the market cap exceeded $69,000.

Notably, since August, pump.fun introduced new rules with free token creation and economic incentives for creators who successfully complete the bonding curve. The creation cost shifted from the creator to the first buyer under the new rules, and creators who complete the curve successfully now receive a 0.5 SOL (approximately $80) reward, with the migration fee adjusted to 1.5 SOL.

1.4% Graduation Rate from Over 1.8 Million Deployed Tokens

According to Dune dashboards by Hashed, nearly 1.8 million tokens have been deployed on pump.fun. Despite the significant market volatility and declining interest in Meme tokens, deployment activity on pump.fun continues unabated.

Further analysis by @evelyn233 reveals that in the past month, an average of over 20,000 tokens were deployed daily on pump.fun. However, only a tiny fraction—between 100 and 200 tokens—successfully launched on Raydium (i.e., reached the $69,000 market cap “graduation” threshold). This results in a recent graduation rate of 1% to 2%, with the overall platform rate at just 1.4%. Moreover, many tokens that did graduate saw their market caps plummet to nearly zero.

One developer created 3,357 tokens but only graduated 16, while ten addresses created over 1,000 tokens each, with one creating 1,915 tokens without a single graduation.

Million-Dollar Market Cap Probability: Only One in 100,000:

Launching successfully on Raydium doesn’t guarantee stable market cap growth. Analyzing the post-migration market performance, it’s evident that very few tokens reach the million or ten-million-dollar market cap thresholds.

As of writing, out of nearly 1.8 million deployed tokens, only 18 have surpassed a $10 million market cap, including michi, DADDY, BILLY, MOTHER, SCF (Smoking Chicken Fish), TrumpAvega, aura, and SC (Shark Cat). Only 96 tokens have exceeded a $1 million market cap.

These figures suggest that the probability of a token exceeding a $10 million market cap is roughly one in 100,000, and the probability of surpassing $1 million is about one in 20,000. This data highlights the intense competition and low success rate in the token market.

Steady Increase in New Token Creation via pump.fun

The chart below shows the ratio of new tokens created on pump.fun compared to other tokens on the Solana network. There’s a steady rise in pump.fun’s share, reaching a 6:4 ratio in recent days.

Total Fees on pump.fun Exceed 0.1% of SOL’s Total Supply:

Total fees on pump.fun have reached 624,640 SOL, accounting for over 0.1% of Solana’s total supply, equivalent to approximately $90 million at current prices. Remarkably, pump.fun has only been operational for seven months.

According to Lookonchain, the pump.fun fee account sold 222,073 SOL at an average price of $160 over the past three months, converting it to $35.54 million USDC.

2.43 Million Users with Daily Active Users Between 50,000 and 70,000:

@jhackworth‘s Dune dashboard shows that pump.fun has over 2.43 million users. The platform maintained a high daily active user count of 50,000 to 70,000 over the past three months.

Only 3% of Users Profit Over $1,000 on pump.fun:

According to @adam_tehc, if you profit over $1,000, you rank in the top 3% on the profit leaderboard.

• If you earn over $10 million, you rank in the top 6.
• If you earn over $1 million, you rank in the top 70 (0.0028% of all wallets).
• If you earn over $100,000, you rank in the top 924 (0.037% of all wallets).
• If you earn over $10,000, you rank in the top 11,936 (0.477% of all wallets).
• If you earn over $1,000, you rank in the top 76,587 (3.061% of all wallets).

Conclusion

Despite the current downturn in the crypto market and the slight decline in Solana’s popularity, pump.fun’s user base and activity remain strong. The platform could continue generating steady fee income if it maintains user engagement.

However, it’s crucial to recognize the significant challenges. The extremely low graduation rate, weak post-graduation market cap growth, and disappointing user profits have shaken user confidence. This diminished confidence could directly impact the platform’s user retention and ability to attract new users in the short to medium term.