David Edwards
Recent data from Dune Analytics shows that 99.6% of traders on Pump.fun, a decentralized platform for creating memecoins based on Solana, have not yet locked in profits over $10,000. Even though there is a lot of activity on the platform, only few wallets have had substantial realized gains.
Only 55,296 wallets, or the top 0.412% of the platform’s 13.55 million wallet addresses, have made more over $10,000 in profits. Six-figure returns are still uncommon, though, as only 0.048% of wallets have earned gains of $100,000 or more. Fewer still, only 293 wallets (0.00217%) have made more than $1 million.
Misrepresentation of Data?
On-chain researchers warn against reading too much into these figures, even when they show limited profitability. In a January 10 post on X (previously Twitter), Dune analyst Adam Tehc pointed out that realized earnings only take into consideration closed positions; profits on holding assets (also known as unrealized gains) are not included.
Alon, a pseudonymous analyst, also identified possible problems with the dataset. Their Jan. 10 post claims that profit-and-loss computations frequently fail to include transactions that take place after memecoins link to the decentralized exchange Raydium, which is a popular trading destination for Pump.fun tokens. The actual number of extremely lucrative wallets may therefore be “an order of magnitude larger than exhibited.”
Revenue Is Higher Than Profitability
Even because there aren’t many traders making large profits, Pump.fun’s revenue keeps rising. As of January 2, blockchain analytics company Lookonchain reported 2,016,391 SOL tokens, bringing the platform’s total earnings close to $400 million. According to reports, the platform has transferred $41 million to USD Coin and deposited over $300 million in SOL to Kraken.
Despite a December decline in the overall market capitalization of memecoins, this impressive revenue figure demonstrates the platform’s expanding impact inside the memecoin ecosystem.
Unrealized Profits Still in Play Alon also highlighted the significance of unrealized gains, pointing out that traders with long-term holdings in early-stage tokens can own some of the most lucrative wallets. According to this dynamic, the platform’s actual profitability may be far higher than its current realized numbers.
Pump.fun continues to play a significant role in the evolution of memecoins by providing cutting-edge trading tools and facilitating liquidity. The discrepancy between revenue growth and the gains made by individual traders, however, calls into doubt the decentralized trading platforms’ overall viability and equity.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice.
