A recent analysis from Galaxy Research uncovers that while memecoins draw numerous newcomers to the world of cryptocurrency, most of the financial spoils are not benefiting the traders directly. Instead, platforms involved in launching and trading these tokens significantly profit.

According to a Wednesday report, the majority of traders are experiencing losses in this fast-paced market, whereas infrastructure players—particularly launchpads, decentralized exchanges, and trade automation tools—are the ones raking in substantial revenues by enabling memecoin transactions.

For instance, Solana’s Pump.fun, a launchpad introduced in early 2024, has emerged among the top gainers, with its tokens totaling nearly $4.8 billion in fully diluted market capitalization. The study noted that almost 13 million of the 32 million tokens available on Solana were launched through Pump.fun, showcasing a massive growth of nearly 300% within a span of two years. “Pump.fun has effectively streamlined the token issuance process on the Solana network,” said Galaxy Research.

Total token sales on Solana. Source: Galaxy Research

Moreover, the duration for which users hold Solana memecoins has drastically dropped to around 100 seconds, compared to 300 seconds last year, illustrating the influence of trading bots and scalpers in this domain.

One specific platform, Axiom, has reportedly amassed over $200 million in fees despite having less than ten employees, attributed to its heavy engagement with memecoin trades. “Axiom has grown to become a million-dollar business through fee collections from memecoin activities,” it stated. Other services like BONKbot and Trojan also monetize by charging users for automated services that snatch up new tokens at launch.

Daily revenue from memecoin infrastructure. Source: Galaxy Research

Pump.fun’s Ongoing Expansion

Despite memecoins providing limited practical utility outside of cultural significance, platforms like Pump.fun are flourishing. On July 12, the platform successfully launched its native token, PUMP, which raised an impressive $500 million in under 12 minutes with an initial offering of 125 billion tokens.

Pump.fun tokens on Solana. Source: Galaxy Research

Data retrieved from DefiLlama highlighted that Pump.fun generated $13.48 million in revenue from August 11 to 17, marking a significant performance increase since February.

Reports indicated that Pump.fun witnessed over $1 billion in trading volume on September 14, hitting $1.02 billion, after achieving $942 million the previous day. Over the last month, it was noted that the memecoin launchpad accrued around $120 million in transaction fees.

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