Research: Pump.fun's 95% Revenue Comes from "Internal Trading," Profiting from Tokens That Go to Zero Data research firm Sparsity reports that approximately 95% of Pump.fun's protocol revenue comes from its internal trading phase, or tokens with a market capitalization of less than $250,000. The internal trading platform charges a 1.25% fee on each transaction, with 0.95% going to the platform. According to their statistics, three-quarters of the revenue comes from tokens listed for less than an hour. In other words, Pump.fun profits from the sheer number of tokens issued, not from the number of tokens that actually generate revenue. Fifteen top-performing Meme tokens, whose combined market capitalization once reached $1.4 billion, contributed only about $1.5 million in fees to the platform. 1,000 tokens with a market capitalization of $20,000 that went to zero were more profitable than a single token that rose to $100 million. Sparsity believes that this incentive mechanism fostered mass token issuance, bundled buying sprees, and low-market-cap hype, making "holding" a losing strategy. In the fourth quarter of 2024, 207 out of 3.16 million new coins on Pump.fun achieved a market capitalization of over 10 million US dollars; in the third quarter of this year, 3.05 million coins were issued, but only 24 achieved a market capitalization of over 10 million US dollars.