How Pump.fun Became Solana’s Leading Memecoin Platform

Key Takeaways

• One-click minting, bonding-curve “graduation,” and locked LPs concentrated liquidity, driving Pump.fun’s share to nearly 75%–80% at its peak.

• Launches and fee revenues are cyclical. After plunging over 80% from January highs, activity rebounded sharply by late August.

• Competitors such as LetsBonk, HeavenDEX, and Raydium LaunchLab can temporarily gain share through incentives or fee cuts, but network effects tend to pull creators and liquidity back.

• Security incidents and US class-action litigation, including RICO allegations, pose the biggest threats to long-term stability.

Introduction

Pump.fun is a Solana-native token launchpad designed to make creating a new coin almost effortless.Each token begins its journey on a bonding-curve contract, where around 800 million tokens are sold sequentially. Once this supply is fully purchased, the token “graduates,” automatically transitioning into trading on an automated market maker (AMM). That AMM is now Pump.fun’s own decentralized exchange, PumpSwap, whereas earlier tokens graduated to Raydium.

For creators, the platform’s cost structure is minimal. There is no fee to mint, and the graduation stage carries a small fixed charge of 0.015 SOL, deducted directly from liquidity rather than paid separately. After graduation, PumpSwap burns the liquidity provider (LP) tokens tied to the new trading pair, locking liquidity permanently so it cannot be withdrawn manually. This structure allows trading to occur only through normal buy-sell activity, standardizing early price discovery while drastically reducing rug-pull risks.

How Pump.fun Captured 80% of Solana’s Memecoin Launches

Pump.fun achieved dominance by merging ultra-low-friction token creation with a standardized route to liquidity. By funneling tokens through a bonding-curve graduation system and into an AMM, the platform made early price discovery predictable and limited one of the main exploit vectors for creators.

As Solana’s memecoin mania accelerated, this approach converted into near-total market capture. By mid-August 2025, Pump.fun regained approximately 73%–74% of launchpad activity over a seven-day period.

Competition emerged quickly. In July 2025, rival LetsBonk briefly overtook Pump.fun in both volume and revenue before the latter regained momentum. This demonstrated how rapidly deployers move toward whichever venue offers the most efficient execution and liquidity.

Pump.fun strengthened its lead through two major policy moves:

1. Aggressive buybacks of its native PUMP token, at times consuming over 90% of total revenue.

2. A revamped creator incentive program known as Project Ascend.

Public reports highlight multimillion-dollar weekly repurchases and eight-figure creator payouts, both of which helped attract new deployers and restore dominance. Throughout 2025, external data consistently showed Pump.fun maintaining roughly a 75%–80% share of graduated Solana tokens during bullish market phases, a level it returned to by late August following the summer slowdown.

Timeline of Key Events, Share, and Revenues

Jan. 24–26, 2025: Pump.fun records an all-time daily fee high of $15.4 million as Solana’s meme frenzy peaks.

Late Jan.–Feb. 26, 2025: Daily launches fall from about 1,200 per day (Jan. 23–24) to roughly 200 per day by Feb. 26, an 80%+ decline, according to Dune Analytics data.

May 16–17, 2024: An insider exploit drains $1.9 million, forcing a short operational pause while the team patches vulnerabilities.

July 2025: LetsBonk surpasses Pump.fun in daily revenue and share for the first time since Pump.fun’s breakout.

Aug. 8, 2025: The Glass Full Foundation launches to assist featured listings during a revenue lull.

Aug. 11–21, 2025: Pump.fun’s market share rebounds to 74% on a seven-day average, achieving a $13.5 million record week and multibillion-dollar trading volumes. Some trackers show intraday highs close to 90% as competitors lose momentum.

Aug. 20, 2025: Cumulative platform fees exceed $800 million, confirming the scale of the model despite volatility.

September 2025: Under Project Ascend, creators claim over $16 million, while buybacks continue aggressively, helping restore growth and confidence.

Pump.fun’s pattern remains cyclical yet durable. When sentiment wanes, fees and token launches decline. When liquidity improves and incentives return, market share typically recovers within the 70%–80% band on weekly metrics.

Rivals and the “Anti-Pump” Strategy

Competitors have consistently attempted to challenge Pump.fun’s economic and liquidity advantages. As noted, LetsBonk briefly took the lead in July 2025 before Pump.fun’s rebound. The competition was widely described as Pump.fun “fending off” a credible challenge.

Raydium LaunchLab became another significant rival once Pump.fun stopped sending graduated pools to Raydium and launched PumpSwap. Raydium leveraged its robust native liquidity system, allowing new tokens to graduate directly into established AMM pools, appealing to traders and creators seeking deeper liquidity.

HeavenDEX (Heaven) entered the scene with a unique “give-it-back” model that burned 100% of its revenue, attracting up to 15% of daily launches during its peak. For a time, it became the strongest alternative during the summer’s market share skirmishes.

However, barriers to switching remain low. Token deployers migrate rapidly between platforms that offer better incentives, cheaper fees, or more reliable liquidity. As a result, share fluctuations occur frequently whenever a rival modifies its reward structure or cost base.

Security, Legal Risk, and Market Cycles

Despite its innovation, Pump.fun has faced persistent operational and reputational challenges.

Security Incidents

In May 2024, a former employee exploited insider access to steal roughly $1.9 million, prompting a brief suspension and subsequent contract redeployment. The team later confirmed that core contracts remained secure. On Feb. 26, 2025, Pump.fun’s official X account was hijacked to advertise a fraudulent “PUMP” token, underscoring the risk of social-engineering attacks within the memecoin ecosystem.

Legal Exposure

Several US civil cases allege that Pump.fun enabled the sale of unregistered securities. A consolidated class-action complaint filed in July 2025 expanded the case to include RICO (Racketeer Influenced and Corrupt Organizations Act) claims and additional defendants. The litigation could reshape how token launchpads handle listings, disclosures, and revenue distribution models.

Cyclical Demand

Launch activity and fee revenues closely mirror market sentiment. After a strong start to 2025, Pump.fun’s July revenue sank to around $25 million, approximately 80% below January’s peak, before rebounding later in the summer. Investor enthusiasm for memecoins tends to ebb and flow alongside broader risk appetite.

Reputation Risks

Memecoins still face scrutiny as potential pump-and-dump schemes. In one notable case, a Wired journalist’s hacked X account was used to create and cash out a Pump.fun token within minutes, amplifying calls for stronger verification and account security measures.

A compliance firm once claimed that 98%–99% of Pump fun tokens matched pump-and-dump or rug-pull patterns, a characterization the team has publicly disputed.

Can Pump.fun Keep Its Edge?

If the Flywheel Holds: Pump.fun’s late-summer rebound to roughly three-quarters of new Solana launches suggests that its low-friction model, standardized liquidity, and concentrated trader base remain powerful. As long as the combination of buybacks and creator incentives continues reinforcing this feedback loop, the platform could maintain dominance through both bull and bear phases.

If the Grip Slips: The brief market-share flip in July proved how rapidly sentiment can shift when a competitor offers lower fees or better automation. Meanwhile, unresolved litigation introduces uncertainty that may force operational changes or alter incentive structures.

Key Metrics to Watch

• Launchpad Share (Weekly): Monitoring Pump.fun’s proportion of graduated tokens and volumes helps gauge its competitive moat. A steady 65%–80% range suggests strength, while prolonged declines would indicate erosion.

• Buyback and Incentive Spending: Weekly buybacks and creator payouts remain critical signals. Consistent funding for these initiatives has historically preceded market-share recoveries.

• Fee and Graduation Policies: Any revisions to creation or graduation costs, or to liquidity-locking mechanisms, can significantly influence deployer behavior.

• Solana Network Health: Broader Solana DEX volume and total value locked (TVL) affect post-graduation liquidity and trading activity.

• Legal Developments: Outcomes of the consolidated class action could determine future platform policies and growth limitations.

Conclusion

Pump.fun has redefined Solana’s memecoin ecosystem by merging simplicity with automated liquidity protection. Its ability to dominate through cyclical volatility underscores a resilient model built around frictionless launches and powerful network effects. However, growing legal scrutiny, security vulnerabilities, and aggressive rivals present real risks. The next phase of its evolution will depend on whether its incentive-driven flywheel can keep spinning amid increasing regulation and competition.

Frequently Asked Questions

What makes Pump.fun different from other Solana launchpads?

Pump.fun combines a bonding-curve sale model with automatic AMM graduation and permanently locked liquidity, minimizing rug-pull risks while simplifying the token launch process.

How does the bonding curve work?

Each token begins with roughly 800 million coins sold in sequence along a pricing curve. Once fully purchased, the token “graduates” and transitions to free-market trading on PumpSwap.

What are the main risks for users and creators?

Security breaches, smart-contract exploits, and potential US litigation over securities laws are key risks. Additionally, high volatility in memecoin markets can cause rapid losses.

How does Pump.fun make money?

The platform collects small graduation fees and trading-related revenues, much of which are reinvested through buybacks and creator incentive programs.

Can Pump.fun sustain its 75%–80% market share?

Its share could remain strong if incentives and liquidity stay competitive, but rivals like LetsBonk and HeavenDEX can quickly regain ground through aggressive fee strategies or rewards.