Memecoins
Solana protocol surpasses Ethereum in daily revenue thanks to $51 billion memecoin craze – DL News
- Pump.fun dethroned Ethereum in terms of daily revenue for the first time on Monday.
- The protocol is used to generate and exchange memecoins on the Solana and Blast blockchains.
- It has generated more than $51.3 million in revenue since its inception in January.
Memecoin generator Pump.fun surpassed Ethereum in daily revenue for the first time on Monday.
Pump.fun generated gross revenue of $1.99 million, DefiLlama data showssurpassing Ethereum’s daily revenue of $1.91 million, with Solana itself earning $806,957 for the day.
The protocol is used to create and trade memecoins on the Solana and Blast blockchains, but it is most popular on Solana. Its revenue comes from fees that users pay to use the platform.
It benefited from the memecoin trading frenzy that dominated crypto in the first half of the year, particularly on Solana, the network of choice for 85% of all new tokens traded on decentralized exchanges in 2024.
Pump.fun is popular because it doesn’t require coding to create memecoins and it’s a secure platform that tries to prevent “early rugs”.
Early carpet runs are cases where token creators remove liquidity shortly after a token launches, leaving investors in the lurch.
Despite the suffering of a $2 million computer hack in MayPump.fun has helped memecoin creators deploy more than 1.2 million tokens since its inception in January. The protocol has produced $51.3 million in income so far.
Memecoins are a major crypto sector valued at $51.5 billion, according to data from CoinGecko. Major memecoins include Dogecoin, Shiba Inu, and Pepe.
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Meme-inspired tokens were once animal-themed or based on popular internet memes, but have now expanded to include celebrity-based tokens.
Celebrity based tokens are often tainted with controversy and could become the subject to future enforcement action by U.S. regulators.
Ethereum creator Vitalik Buterin has criticized celebrity memecoin culture and said creators should focus on projects that provide “some kind of public good,” rather than enriching early adopters.
There are even tokens based on American political figures whose price movements often reflect political sentiments.
Short Memecoins
Most memecoins are only available for spot trading. Exceptions include Dogecoin, Shiba Inu, Pepe, and Brett, tokens with a market size large enough to allow leveraged trading on multiple centralized exchanges.
But that’s about to change, according to MarginFi, a Solana-based platform that will introduce a protocol called mrgnswap to allow traders to place long or short bets on memecoins with leverage.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or information on articles, please contact him at osato@dlnews.com.