Majority of Pump.fun traders accumulate minimal profits, barely exceeding $10,000; with an astounding 99.6% falling short of the profits threshold.
Pump.fun, a meme coin launchpad on the Solana blockchain, has generated significant revenue since its inception. The platform has raked in nearly $400 million in total, according to analysts. However, gauging the success of individual traders on Pump.fun can be challenging due to profits only being accounted for after trades are closed.
Despite the robust revenue generation, a small percentage of traders have managed to secure substantial profits. Only 0.412% of traders have earned more than $10,000, and this figure drops to 0.048% for those making over $100,000. Gains over $1 million are even rarer, claimed by 293 wallets or about 0.00217%.
The meme coin market, including Pump.fun, is known for its volatility. In December 2024, the market faced a substantial drop in market cap, affecting the overall value of assets on Pump.fun. This volatility has led to mixed outcomes for traders, with opportunities for both large realized profits and substantial unrealized losses or gains depending on timing.
The aggressive buyback strategy implemented by Pump.fun, which uses fees to stabilize the token price, may affect trader revenues. While this strategy can support realized profitability, it has raised questions about sustainability, implying that some realized gains might be artificially supported while others may be at risk from market sell-offs.
Comparatively, the broader meme coin markets remain characterized by high volatility and speculative interest. Traders often face challenges in both realizing profits and dealing with significant unrealized volatility.
While no precise metric of trader success rate or average revenue generated on Pump.fun is available, some profitable users reportedly hold unrealized gains on early-stage assets. Additionally, the data on Pump.fun might not fully reflect all profits, particularly from coins integrated with Raydium.
In January 2025, Pump.fun had earned over 2 million SOL, equivalent to ~$398 million. However, the exact amount of earnings in USDC is not specified in the provided information. The impact of Raydium-integrated coins on profits on Pump.fun might not be fully reflected in the current data.
Out of 13.6 million wallets registered on Pump.fun, just 55,296 have achieved returns of more than $10,000. Moreover, out of more than 2 million tokens launched on Pump.fun, only 92 had a market capitalization surpassing $1 million in September 2024.
In conclusion, while Pump.fun has seen massive initial capital inflows and trading volumes, its token and related meme coins exhibit high volatility leading to mixed trader outcomes. The market context suggests that revenues and success rates vary widely, with many traders exposed to large swings in unrealized profits before potentially realizing gains or losses. The aggressive buyback attempts to support realized profitability but raises sustainability concerns. The impact of Raydium-integrated coins and exact trader success metrics remain to be fully understood.
Investing in Pump.fun's meme coins may yield substantial profits for a select few, yet the success rate remains challenging to quantify. For instance, only 0.412% of traders have made over $10,000 on the platform.
Despiteits significant revenue generation and the potential for large realized profits, the platform's high volatility and the unrealized gains or losses it creates present a challenge for traders, as demonstrated by the variation in trader outcomes.
