Impressive Revenue for Pump.fun, Yet Prices Remain Stagnant

Although the PUMP token is currently trading 20% below its ICO price (around $0.0036), Pump.fun continues to make a strong impression with exceptional revenue. Last week, Pump.fun reported $10.2 million in transaction fees, placing it among the top 20 crypto projects globally in terms of fee revenue. The majority of this revenue comes from PumpSwap, the project’s decentralized exchange (DEX), with 50% generated from swap activities and 25% of that amount allocated for PUMP token buybacks.

Despite its impressive revenue stream and transparent fee-sharing mechanism (0.3% of each transaction is distributed to liquidity providers, the team, and creators), PUMP faces challenges in token distribution. Eighteen percent of the total token supply was sold in a private round and fully unlocked from the first day, leading to significant sell pressure post-ICO. As a result, the token price does not accurately reflect its revenue potential, even though the fully diluted valuation (FDV) of the project reaches $3.6 billion, three times the actual market capitalization.

In contrast, competitor BONK has opted for a community-focused token distribution strategy, building an image “friendly to retail investors” and attracting natural capital inflows. Although BONK’s fee revenue is lower, it has achieved a market cap of $2.93 billion thanks to strong community support and market confidence.

Related: The White House Prepares to Release Crypto Policy Report

Account Ignas commented:

PUMP generates real revenue but lacks the ‘spark’ from the community. If the gap between cash flow and market perception is not addressed, the project risks being left further behind by BONK.