TLDR
- New Galaxy Digital research reveals memecoin trading infrastructure generates millions while most individual traders lose money
- Pump.fun launched 13 million tokens on Solana and earned $120 million in fees over 30 days
- Average holding periods for Solana memecoins fell from 300 seconds to just 100 seconds due to bot trading
- Axiom trading platform generated $200 million in fees with under 10 employees
- Pump.fun’s token sale raised $500 million in 12 minutes during July launch
A new report from Galaxy Digital shows that memecoin platforms are the real winners in crypto’s meme token economy. Research analyst Will Owens published findings Wednesday revealing how infrastructure providers capture substantial profits while traders struggle.
The study examines platforms like Pump.fun, decentralized exchanges, and automated trading bots. These services collect fees from every transaction regardless of trader outcomes.
Pump.fun has become the dominant force in memecoin creation since launching in early 2024. The Solana-based platform allows users to create tokens in minutes with minimal technical knowledge.
The launchpad has facilitated nearly 13 million token launches out of 32 million total tokens on Solana. This represents a 300% increase in less than two years.
Galaxy Research states tokens created on Pump.fun hold a combined market value of $4.8 billion. The report describes how the platform has streamlined and industrialized the token creation process.
Revenue Generation Reaches Record Levels
Pump.fun generated $120 million in fees during the past 30 days according to DefiLlama metrics. The platform experienced its strongest week since February between August 11 and August 17, earning $13.48 million.
Trading volume on Pump.fun exceeded $1 billion on September 14, reaching $1.02 billion. This followed $942 million in volume the previous day.
The platform launched its PUMP token on July 12 in an initial coin offering that raised $500 million. The sale offered 125 billion tokens and completed in under 12 minutes.
Other platforms also benefit from memecoin trading activity. Axiom generated over $200 million in fees with fewer than 10 employees by collecting transaction fees from traders.
Bot Trading Dominates Market Activity
The Galaxy Digital report shows median hold times for Solana memecoins dropped to approximately 100 seconds. This declined from 300 seconds one year ago.
The data indicates bots and automated scalping programs control much of the trading activity. These systems execute trades faster than human participants can react.
Services like BONKbot and Trojan charge fees for automatically purchasing newly launched tokens. These tools help traders attempt to profit from token launches through automated sniping.
Owens argues memecoins serve as effective tools for bringing new users into cryptocurrency. The tokens blend humor with financial speculation to attract participants.
The research shows memecoins generate some of the highest liquidity and fee volumes across crypto markets. Their price volatility creates consistent revenue for exchanges and liquidity providers.
Galaxy Digital notes that users engage with memecoins both as traders and community members. Participants create narratives, memes and digital identities around tokens.
The report acknowledges most memecoins remain speculative with short lifespans. However, Galaxy concludes these tokens have evolved into a permanent component of crypto infrastructure.
Owens believes memecoins drive experimentation in token issuance and trading mechanics. The high transaction volumes help test blockchain systems at scale.
Data from DefiLlama confirms Pump.fun continues to process substantial daily volumes. The platform maintains its position as the leading memecoin launchpad on Solana despite market fluctuations.
