One-click minting, the joint curve "graduation" mechanism, and locking liquidity providers (LPs) have concentrated liquidity, pushing Pump.fun's market share to a peak of 75%-80%.
The volume and fees fluctuate cyclically. After plummeting 80% from the January high, activity rebounded strongly in late August.
Competitors (LetsBonk, HeavenDEX, Raydium LaunchLab) can flip market share in the short term through fees or incentives, but network effects often pull activity back.
Security incidents and a U.S. class action lawsuit (including RICO charges) are the biggest ongoing clouds hanging over the platform.
Pump.fun is a native launch platform for Solana, making the release of tokens as simple as a few clicks.
New coins start from the joint curve contract, with about 800 million tokens sold in order. Once that supply is bought out, the tokens "graduate," and trading automatically shifts to the automated market maker (AMM). Currently, this is Pump.fun's own decentralized exchange (DEX) PumpSwap (earlier released tokens migrate to Raydium).
For creators, the costs are minimal. Minting incurs no fees, and graduation only requires a small fixed fee of 0.015 SOL, which is deducted from the token liquidity rather than paid separately.
After graduation, PumpSwap destroys the liquidity provider (LP) tokens associated with the trading pair, effectively locking liquidity so it cannot be manually withdrawn. Funds can only flow through regular trading activity. This design standardizes early price discovery for new meme coins while significantly reducing the traditional rug pull risk.
Did you know? Only a tiny fraction of Pump.fun tokens can "graduate." In July and August 2025, the graduation rate hovered around 0.7%-0.8% of the release volume.
Pump.fun's dominance comes from combining ultra-low friction token creation with a standardized liquidity path.
By guiding new tokens to graduate from the joint curve into the AMM, Pump.fun makes early price discovery more predictable and reduces one of the main ways creators can rug pull. With the rise of the Solana meme coin cycle, this design translates into dominance: by mid-August 2025, Pump.fun reclaimed about 73%-74% of launch platform activity share over a seven-day period.
This leading position is not without challenges. In July, the challenger LetsBonk briefly surpassed Pump.fun in trading volume and revenue, only for the momentum to swing back (proving that deployers quickly migrate to where execution and liquidity appear best).
Pump.fun solidified its dominance through two strategic policy shifts: using revenue to fund aggressive buybacks of Pump.fun (PUMP) tokens (with some weeks consuming over 90% of revenue) and a redesigned creator payment scheme under "Project Ascend." Public disclosures show millions of dollars in buybacks weekly and eight-figure creator claims, which may help attract deployers and regain momentum.
Throughout 2025, external trackers consistently showed Pump.fun holding about 75%-80% of the "graduated" Solana launch platform token share during market upswings—levels it reached again in August after the drop in July.
Did you know? During the frenzy, Solana's fees remained around a few cents (or even lower). In the second quarter of 2025, average fees dropped to about $0.01, while the median hovered around $0.001, despite peaks during the official Trump (TRUMP) token frenzy in January.
January 24-26, 2025: As the Solana meme coin season peaked, Pump.fun set a historical single-day fee record of about $15.4 million.
Late January - February 26, 2025: Based on Dune-tracked groups, daily release volume fell from about 1,200/day (January 23-24) to about 200/day by February 26, a drop of over 80%.
May 16-17, 2025: An internal exploit of about $1.9 million forced a temporary pause; services resumed after fixes and detailed post-analysis.
July 2025: New competitor LetsBonk briefly surpassed Pump.fun in 24-hour revenue and market share—marking the first significant flip since Pump.fun's breakthrough.
August 8, 2025: Pump.fun launched the "Glass Full Foundation" to support select listings during a revenue slump.
August 11-21, 2025: Market share rebounded to about 74% on a seven-day basis, setting a record weekly revenue of $13.5 million and billions in weekly trading volume. Some trackers showed daily peaks approaching 90%, as competitors gradually faded.
August 20, 2025: Cumulative fees exceeded $800 million, highlighting the scale of the Pump.fun model despite fluctuations.
September 2025: Under Project Ascend, creator claims exceeded $16 million, and the team continued aggressive buybacks—widely seen as helping to restore appeal.
Pump.fun's dominance is cyclical but resilient. When sentiment weakens, release volume and fees drop sharply. When incentives and liquidity improve, its share often rebounds—typically falling within the 70%-80% range on a seven-day basis.
Competitors are trying to compete on economics and liquidity. As mentioned, LetsBonk briefly stole the spotlight in July, with some trackers showing it leading in market share, before Pump.fun regained leadership in August. Reports described it as Pump.fun "withstanding" credible challenges.
Raydium LaunchLab positioned itself as an internal alternative after Pump.fun stopped graduating pools to Raydium and launched PumpSwap. LaunchLab leverages Raydium's native liquidity infrastructure—directly migrating new tokens to Raydium AMM pools—to attract creators and algorithmic traders seeking depth and mature liquidity.
Newer challenger Heaven (HeavenDEX) introduced a "feedback" model, destroying 100% of platform revenue and handling about 15% of daily release activity for a time. During the summer share battle, it positioned itself as the strongest competitor to the Pump.fun model.
Ultimately, the switching costs are low. Deployers will shift to places offering the best combination of fees, incentives, and post-graduation liquidity. When competitors cut fees or increase rewards, market share can shift rapidly.
Pump.fun faces its own challenges.
Security incidents
Pump.fun has experienced notable security incidents. In May 2024, a former employee exploited privileged access to withdraw about $1.9 million, leading to a temporary trading pause and contract redeployment, with the team stating the contracts remain secure. On February 26, 2025, its official X account was hijacked to promote a fake "PUMP" token—highlighting social engineering vulnerabilities on meme coin platforms.
Legal clouds
Multiple U.S. civil lawsuits allege that Pump.fun facilitated the sale of unregistered securities. A consolidated amended complaint filed in July 2025 added RICO (Racketeer Influenced and Corrupt Organizations Act) charges and new defendants. The outcome remains uncertain, but the lawsuits could reshape how launch platforms handle listings, disclosures, and revenue plans.
Cyclical demand
As mentioned, release numbers and fee revenues reflect retail risk appetite. After a strong start in 2025, July revenues fell to about $25 million, down about 80% from January's peak, before activity rebounded in late summer. Interest in meme coins naturally fluctuates over time.
Reputation risk
Scrutiny of meme coins as pump-and-dump games has not faded. In one case, a hacked X account of a Wired magazine journalist was used to create Pump.fun tokens and cash out within minutes—adding pressure on the platform to improve account security, strengthen verification, and prevent opportunistic releases.
Did you know? A compliance firm claims that about 98%-99% of Pump.fun tokens fit the pump-and-dump/rug pull model—Pump.fun disputes this assessment.
If the flywheel continues
Pump.fun's rebound in August to about three-quarters of the new Solana release share indicates that the core loop—low friction, standardized "graduation" liquidity, and trader concentration—remains intact. If buybacks and creator incentives continue to reinforce this loop, dominance may even persist during slower phases.
If control slips
July showed how quickly momentum can shift when competitors cut fees or attract deployer bots. Ongoing litigation adds another layer of uncertainty, potentially triggering changes in listing, disclosure, or revenue plans.
Launch platform share (weekly): Tracking Pump.fun's share relative to competitors in "graduated" tokens and trading volume. A stable range of 65%-80% indicates its moat is holding; a sustained decline points to erosion.
Buyback and incentive spending: Monitoring weekly buybacks and creator payments. Ongoing and visible support often precedes a recovery in market share.
Fee and graduation policies: Any adjustments to creation or graduation fees—or liquidity handling—can quickly change deployer behavior.
Solana context: Focusing on DEX trading volume and total value locked (TVL). Thinner liquidity can reduce depth and trader stickiness post-graduation.
Legal milestones: Tracking the progress of consolidated class action lawsuits. Unfavorable rulings could limit growth levers or trigger operational changes.
Related topics: Solana ETP inflows exceed $500 million, CME open interest surges, SOL may hit new highs?
This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making decisions.
Original article: “Pump.fun Captures 80% of Solana Meme Coin Share: Can the Advantage Last?”
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