Recently, the SunPump platform led by Justin Sun has exploded. Its daily revenue and the number of meme coins issued have exceeded those of the former king pump.fun, making it the leading platform in the current memecoin market. Driven by these platforms, is the meme coin track about to explode?
1. Memecoin Narrative
What is significantly different from previous rounds of crypto bull markets is that this round of bull markets lacks large-scale industry innovations like ICO in 2017 and DeFi in 2020, and is more driven by external benefits (such as Bitcoin spot ETFs).
Moreover, with the popularity of Bitcoin spot ETFs, more and more institutions have begun to enter the encryption market, the market landscape has changed significantly, and the difficulty for retail investors to make money has suddenly increased.
On the one hand, VCs work with project owners and exchanges to harvest users; on the other hand, retail investors have come to their senses after suffering huge losses many times. They have finally seen through the tricks and “true faces” of capital and no longer have illusions about VC coins.
As a result, a large number of retail investors began to turn their attention to meme coins that have no practical significance. In the eyes of retail investors, compared with VC coins, the issuance of meme coins is fairer, more transparent, and more decentralized, and the tokens are 100% fully circulated, so there are not so many "tricks".
For example, the issuance of Bitcoin inscriptions and other public chain inscription tokens is obviously fairer than the issuance of VC coins. Both VC investors and ordinary retail investors need to pay gas fees to engrave.
In addition, the emergence of meme coins on the Solana and ETH public chain platforms, whose returns have reached thousands of times, has attracted more users to participate in the meme coin trend.
Many users even personally operate and promote the meme coins they like. For example, the former rats community and avav community were very powerful. Ironically, the operation of these meaningless meme coins is more decentralized than that of VC coins, and is more in line with the underlying spirit of blockchain technology.
2. The rise of pump.fun platform
The pump.fun platform was born in such a context. The platform was launched in February this year. When it was first launched, it did not attract much attention from the market, and not many users used the platform.
It wasn’t until mid-March this year that the number of users and usage of the pump.fun platform began to soar.
The rapid rise of pump.fun is mainly due to the Solana meme coin craze led by BOME in March this year.
The Solana meme coin craze in March this year not only brought a large number of users and funds to the Solana ecosystem, but also spawned meme coin issuance platforms such as pump.fun.
pump.fun is essentially a token issuance platform, which greatly lowers the threshold for token issuance. Moreover, it is a platform built on the Solana public chain platform, which has advantages in terms of transaction fees and speed.
Tokens created on pump.fun will initially only be traded within the platform. When the token market reaches $60,000, pump.fun will automatically close trading of the token and migrate token trading to Raydium on the Solana platform.
The probability of pump.fun successfully listing its tokens on the DEX platform Raydium after issuing them is called the "graduation rate". According to statistics, the "graduation rate" is only 1.4%, which means that only 1.4% of the tokens successfully entered Raydium.
How does pump.fun make money?
pump.fun mainly generates revenue by charging a 1% transaction fee. When the pump.fun platform initially issued tokens, the platform charged a token deployment fee of 0.02 sol, but the token deployment fee has now been cancelled.
How popular is pump.fun?
On the day when Musk and Trump had a conversation on the X platform, a large number of meme coins were issued on the pump.fun platform. More than 10,000 new tokens were born within three hours, and 23,000 tokens were launched in one day, setting a historical record of $5 million in fees for the platform.
According to dune platform data, from its launch in February to now, in just 6 months, the number of tokens issued on the pump.fun platform has reached more than 2 million, and the cumulative revenue has exceeded US$100 million.
It can be seen how terrifying the income of the pump.fun platform is. In early July, the income of the pump.fun platform in the last 24 hours once exceeded that of public chain platforms such as Ethereum, Tron, and Solana, making pump.fun truly a promoter who "subverts the blockchain network ecology with the platform."
3. SunPump Platform Explosion
The explosion of SunPump has also attracted more and more competitors, most of which have not made much progress, but SunPump, led by Justin Sun, has exploded recently.
The model of SunPump is similar to that of pump.fun, except that it is a meme coin issuance platform on the TRX chain.
In just 14 days since SunPump was launched, the number of meme coins issued through the platform has reached 31,986, and the platform's revenue has reached 12.81 million TRX, nearly US$2 million in revenue.
In an August 21 X post, blockchain researcher Adam noted that SunPump’s revenue and number of new tokens both closed the day higher than similar metrics on Pump.fun.
According to CryptoBriefing’s report on the 23rd, SunPump generated $567,000 in revenue within 24 hours, surpassing Pump.fun’s daily revenue (over $368,000), becoming the leading platform in the current memecoin market.
The success of the SunPump platform has a lot to do with Justin Sun’s influence in the industry. At present, SunPump is still making extensive layouts and has cooperated with platforms such as 3Hub.io and UXUY. The explosion of the SunPump platform has also driven the development of the TRX public chain platform.
In short, innovations in token issuance methods can drive a wave of new narratives, such as the ERC20 token issuance wave triggered by 1CO in 2017 and the BRC20 token issuance boom triggered by the Ordinals protocol last year. Similarly, pump.fun and SunPump have also launched new meme coin issuance models. In the future, more public chains will launch similar meme coin issuance platforms, thereby driving a new round of meme coin market.