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- PumpFun users lost $66M in August despite 1.3M active addresses.
- Over 65% of traders ended in losses, averaging $73 each.
- PumpFun still leads Solana launchpads with 46.6% market share.
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PumpFun, Solana’s leading token launchpad, witnessed a surge in user activity during August, but profitability proved elusive for most traders. Despite more than 1.3 million active addresses, users on the platform collectively lost over $66 million trading newly created tokens.
Record Token Creations But Mounting Losses
According to crypto researcher Defioasis, PumpFun facilitated the creation of 595,000 new tokens in August, reclaiming its position as the top Solana launchpad. However, the platform’s heightened activity came with significant losses. More than 60% of traders ended the month in the red, and no single trader netted gains exceeding $1 million.
Data shows that 65.4% of addresses—around 882,000 wallets—lost between $0 and $1,000, averaging $73 per wallet. While the losses seemed minor individually, this group alone accounted for over $64 million in combined losses.
Limited Gains Amid Widespread Losses
Not all traders lost money, but profits were modest. Roughly 416,000 wallets earned less than $1,000, averaging under $100 each. Another 18,000 wallets booked gains between $1,000 and $10,000, while just 1,665 addresses exceeded $10,000 in profits. Overall, losses heavily outweighed gains, leading to a net $66 million downturn for traders.
Buybacks and Market Dominance
Despite trader struggles, PumpFun continued to strengthen its market share. The platform repurchased $58.7 million worth of PUMP tokens in August, bringing total buybacks to more than $66.6 million. This strategy absorbed 17.5 billion tokens at an average price of $0.003765 in an effort to stabilize the token price.
PumpFun also surpassed $800 million in lifetime fees, largely from its 1% swap fee on trades, while capturing 46.6% of the Solana launchpad market. Rival LetsBonk, by comparison, held less than 9%.
PumpFun’s rise comes amid an ongoing class-action lawsuit. Plaintiffs allege the platform functions as an “unlicensed casino,” with losses totaling $5.5 billion. Critics even compared its token mechanics to a “rigged slot machine.” Despite legal challenges, PumpFun continues to attract new users, with over 71,000 PUMP holders and nearly half of ownership concentrated in smaller wallets.
Also Read: Pump.fun Buys Back $62M in PUMP Tokens as Price Jumps 54% and Lawsuit Risks Grow
PumpFun’s August performance underscores a paradox: rapid growth in users and market share, but massive trader losses. While the platform’s buyback efforts and dominance in Solana’s ecosystem highlight its staying power, the lawsuit and trader struggles raise questions about the sustainability of its model.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
