Reviving Memecoins: A Second Life in the Cryptocurrency World

Memecoins look to be getting a second life

by Rebecca Stevens

Published 1 minute earlier on

Pump.fun brought in $521,150 in revenue on April 24, its second-highest day of revenue ever.

What is pump.fun? The protocol allows for anyone to quickly deploy a memecoin by providing a name, ticker, and JPG image with a less than $2 fee. The user does not have to provide any seed liquidity.

The platform first launched on Solana but has expanded to some Ethereum Layer 2’s like Blast and Base. While anyone, in theory, can deploy tokens on any of these networks, there are typically some technical skills associated with doing so, whereas pump.fun makes the process very easy for anyone.

Pump.fun also attempts to prevent rug pulls since every token launched on the protocol does not have a pre-sale or an allocation for any team members. Instead tokens instantly become traded on a bonding curve, where users can buy and sell. After the tokens reach a certain market cap, a certain amount of liquidity is deposited onto a native DEX and burned. In the case of Solana, once a token reaches a $69,000 market cap, $12,000 of liquidity is deposited into Raydium.

The whole concept of pump.fun plays into the era of memecoins that we seem to be living in. The platform reached over $5 million in revenue in revenue in under two months. Its daily revenues peaked back in early April, when memecoins were still at their peak of popularity, but revenues slowed throughout the month.

The concept of pump.fun aligns with the memecoin era we are in. The platform generated over $5 million in revenue and continued to make $120,000 a day during the slowdown, hinting at a resurgence in the memecoin space. More revenue for pump.fun suggests increased memecoin launches on the platform. The GMCI MEME index also climbed back above 300 last week, indicating a slight rebound.

Earlier in the month, the memecoin sector seemed to be losing steam, but it appears to be gaining momentum once again.

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