- The memecoin market lost over $40 billion in December, despite Solana-based meme coin generator Pump.fun making impressive strides.
- Pump.fun defied market headwinds and regulatory scrutiny to reach nearly $400 million in revenue and establish itself as a key player in the meme-token space.
While the cryptocurrency market as a whole enjoyed a bullish period in December, memecoins did not share in the same level of success. Notably, in December, the memecoin market lost over $40 billion in market capitalization.
This followed a significant decline in the meme coin’s market cap, which fell from a high of $137 billion on December 9th to $92 billion by December 23rd. It is worth mentioning that memecoins ended the year slightly higher with a total market cap of $96 billion. This drop represented a 20% decline from December 1.
In the midst of a bearish market, Solana-based meme coin generator Pump.fun defied the odds and made impressive strides.
Meanwhile, Solana’s SOL is swapping hands with $212.93 after a 3.13% surge in the past 24 hours.
According to data from blockchain analytics firm Lookonchain, Pump.fun is poised to generate nearly $400 million in revenue. The platform has earned 2,016,391 SOL tokens, equivalent to approximately $398 million. Despite market headwinds, users have consistently leveraged the platform to launch meme-based tokens, contributing to its profitability.
Data reveals that Pump.Fun’s revenue has been significantly managed. Notably, over $300 million worth of SOL tokens deposited into the Kraken exchange. A portion of these, 41 million tokens were converted into the USDC.
Worth mentioning that USDC ranks above the top ten cryptocurrencies with a market of $44.64B.
Pump.fun’s record-breaking performance in November has fueled its ongoing success. Pump.fun became the first decentralized application (DApp) on Solana to surpass $100 million in monthly revenue, generating $106 million.
Subsequently, the Dapp faced a downturn after the hitting the news headlines for harmful content broadcast via its livestream feature, including reports of violence, self-harm, and animal cruelty. This controversy led to the indefinite suspension of the livestream feature and a 66% drop in weekly revenue by the end of November.
Further complicating its operations, Pump.fun came under regulatory scrutiny in December. On December 6, the U.K.’s Financial Conduct Authority (FCA) issued a warning, accusing the platform of promoting unauthorized financial services. The FCA subsequently blocked the platform in the U.K., adding to the challenges Pump.fun faced in maintaining its momentum.
Despite these hurdles, Pump.fun has demonstrated remarkable resilience. Its daily revenue generation remains robust, and the platform continues to attract users. On January 4, an additional 63,171 SOL tokens, valued at $13.1 million, were deposited into Kraken, bringing the platform’s total deposits to 1,564,064 SOL, worth approximately $316.5 million. To date, Pump.fun has converted 264,373 SOL into 41.6 million USDC, solidifying its financial footing.
As Pump.fun approaches the $400 million revenue milestone, it remains a key player in the meme-token space.
