Pump.fun drains market liquidity, as it produces over 50% of all new token

The dominance of Pump.fun shows no signs of slowing down. The leading token launch platform is now responsible for over 50% of new token launches. 

Pump.fun remains the dominant path of creating tokens. What looked like a fad in 2024 turned into a fixture for the 2025 crypto market. 

In the past weeks, Pump.fun once again surpassed other token creation hubs, including platforms for AI agent tokens. The launchpad is being used for multiple new trends, including the launch of official celebrity tokens or even allegedly official country tokens. 

The Pump.fun platform not only expanded its token creation but continued expanding its dominance against all other types of tokens on all chains. Its token creation surpasses other platforms like Moonshot, TRON’s Sun.Pump, and the newly launched four.meme by Binance. Recently, Berachain also joined with the intention of making its own meme token platform. 

The rush to Pump.fun tokens and short-term trading is boosting Solana activity based on engaged wallets. At the same time, older meme tokens are left behind despite their dedicated communities and holders. Pump.fun also depends on new trends to create the next wave of tokens, including charity tokens, official celebrity assets, and an attempt to launch official country tokens, starting with CAR.

Pump.fun is seamlessly tied to the Solana infrastructure

The main reason for the success of Pump.fun is that it is tied to the Solana ecosystem, with tokens easily finding seamless liquidity on Raydium, Orca, and Meteora DEX. The other important tools are sniping and trading bots, which ensure a baseline level of activity. 

Solana is still the number 1 network for bot usage, meaning almost all token launches can hope to receive some allocations. 

The free creation of tokens on Pump.fun also helped adoption, as the network now produces over 60K new assets per day. Around 1.4% of new meme tokens finish their bonding curve and end up on Raydium. The platform has generated a total of 7.4M tokens, of which 107,633K have graduated to DEX. 

The biggest advantage of Pump.fun is its audience, which is always ready to gamble on the next token with the hope of a breakout. The platform has close to 180K unique users per month, which is a stable baseline level. Average daily active users range above 50K wallets, though only 3% of traders and token issuers have made over $1,000. 

Pump.fun still blamed for draining liquidity and attention

The Pump.fun team retains all fees from trading tokens and has broken the $500M range. Roughly 50% of those funds have been liquidated back into SOL, of which a part has been staked, and some were sold for stablecoins. 

The lack of a fee-sharing program has invited criticism against Pump.fun. The other source of loss may be the unfinished bonding curves, which still hold some SOL. However, if the token creator did not lock the liquidity and relinquish the keys, the token pool could be emptied and the SOL recycled. This allows some token creators to keep generating new memes with minimal losses. 

The constant new token launches are also seen as the reason why a new altcoin season has yet to emerge. Meme tokens reach valuations of over $300M much faster compared to legitimate utility tokens. Traders can start with a small investment and avoid waiting for months. However, this approach also limits innovation, as some of the top projects were the result of ICO sales and long-term community building. 

Meme tokens also go through rapid cycles, with traders often cashing out for the short term. Some of the available crypto liquidity has also moved into the wallets of outsider traders, who are not interested in long-term sustainable projects but are instead looking for fast meme swaps. Previously, meme tokens were seen as an answer to VC-backed assets with low float and high fully diluted value. However, the memes were often held or sniped by insiders. 

The need to realize profits from the Solana ecosystem also keeps the asset in a lower price range. Pump.fun achieves $2.2B in trading volumes on a weekly basis, as traders extract value from the quantity of tokens and not their long-term survival.

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