Update (Jan. 2, 11:30 am UTC): This article has been updated to remove inaccurate data related to revenue generated by Pump.fun on Jan. 1.
Solana memecoin generator Pump.fun’s overall revenue is nearing $400 million despite a downturn in the overall market capitalization of memecoins in December.
Blockchain analytics platform Lookonchain reported that Pump.fun has earned 2,016,391 SOL tokens to date, pushing its total revenue to nearly $398 million. Pump.fun has reportedly deposited over $300 million in SOL tokens to Kraken and converted 41 million in USD Coin (USDC).
Pump.fun’s impressive start to the year followed a record-breaking performance in November, when the platform earned $106 million in decentralized application revenue, becoming the first Solana DApp to surpass $100 million in monthly revenue.
Memecoins lose $40 billion market cap in December
While Pump.fun approaches a new revenue milestone, the memecoin market slowed in December, with its overall market cap declining by over $40 billion.
On Dec. 1, CoinMarketCap showed that the overall market capitalization for memecoins reached $120 billion. It surged even further to $137 billion on Dec. 9 before dropping to a low of $92 billion on Dec. 23.
At the end of the month, memecoin market capitalization was around $96 billion, marking a 20% decrease compared to Dec. 1.
Related: Decentralized exchange volume hits record high of $462B in December
Pump.fun revenue stays strong despite challenges
The platform’s daily revenue at the start of the year shows that users have continued to launch meme-based tokens despite the challenges faced by the platform last year.
On Nov. 25, the platform came under fire for harmful content broadcast by users via its livestream feature. Reports of violence, self-harm and animal cruelty led to community backlash. In response, Pump.fun paused the livestream feature indefinitely, acknowledging the community’s concerns.
Following the controversy, Pump.fun’s weekly revenue dropped by 66% toward the end of November.
The United Kingdom’s financial regulator also set its sights on the Solana memecoin platform. On Dec. 6, the UK’s Financial Conduct Authority warned residents about the platform, saying it had been promoting financial services without permission. The regulator also blocked the memecoin platform in the country.
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