In the meme token launchpad Pump. Fun, only 0.04% of traders in the crypto market could transact over $10,000; this is the bad news that many traders wish to hear, but it’s the real truth. Data, for now, prove that only 54724 out of 13440800 wallets have profits over $10000, and only 294 have profits over $1 million.
Source:X
The former numbers, provided by Dune data analyst Adam Tehc, do not support the commonly held belief that numerous traders make huge profits from cryptocurrency. Tehc said that the number of crypto millionaires using Pump.fun is still “very low” and stressed the difference between hype and reality. The revenues include those from buying Pump.fun tokens as long as the graduated users have not left the platform except if they bought Pump.fun tokens before graduation. The data can also be caused by bots, such as ‘bump bots’ that artificially place small orders to create a demand for the token.
Profitability increasing but remains low
However, although the number of highly profitable traders is small, only 3% of all traders have experienced a dynamic increase over the past year. Regarding the rewards, in early 2024, only 70 wallets with millionaire status and 11,936 wallets received $10,000 or more. Those numbers have grown to 294 millionaires and over 54,000 wallets with more than $10,000 in profits.
Tehc explained this as a seasonal effect arising from the increasing experience of more sophisticated traders in the said platform. Pump.fun was introduced in January of 2024, and it is among the most popular places for meme coin creation and trading, with over 5.7 million tokens supported and an overall revenue of $392,000,000. But most users have failed, whereby an account in November showed that 88 percent of traders either had a loss or were making less than $100 in profit.
Dominance of Solana and popularity among younger users
Pump.fun also remains the most active decentralized exchange on Solana, comprising 70% of Solana-based transactions at the beginning of the year. It has become popular through successful meme coins such as PNUT, GOAT, and other FARTCOINs. This platform is especially popular among the audience under 34; 64% of the users are under this age. It is balancing its investment content and current event coverage as provided on the platform.
Controversies and regulatory challenges
Pump.fun has been experiencing constant growth and development, though such has come with conflict. Again, in 2024, extreme livestream stunts of fake suicides and animal cruelty caused the platform to shut down the live-streaming option. Risk has also increased regarding regulations, where the Financial Conduct Authority in the United Kingdom has considered Pump.fun too dearly for its high risk. After this, the platform banned UK users from using its services in the first place.