Written by: Nico
Translated by: Saoirse, Foresight News
Presumably, everyone has noticed that recently Pump.fun has regained its market dominance. In my previous article, I focused on analyzing the current state of competitors and trading terminals; in this article, I will focus on the bullish logic of Pump.fun, as well as the vast market opportunities emerging in CCMs (Creator Capital Markets) through the native launch platform's livestreaming.
Currently, the price of PUMP tokens is well above the fundraising price, and the platform has launched multiple updates, painting a promising outlook. Next, let's dive into the details.
PUMP's Revenue Flywheel
Since issuance, more than half of participants have sold their tokens, and a large number of tokens have been transferred to other wallets—most likely to sell the tokens in batches to different buyers through one or more KYC-verified wallets.
After the token was listed, there was a price drop, so Pump.fun launched a "revenue buyback" mechanism, with daily buybacks usually accounting for more than 90%-95% of the day's total revenue. So far, the total buyback amount has exceeded $78 million; through the official Pump.fun buyback dashboard, you can view the daily buyback amount and the "supply offset ratio" (currently 5.75% of the circulating supply has been offset).
I once suggested that the Pump.fun team add a "cumulative buyback curve" to the dashboard to visually display the growth trend of buybacks. Before the official update, you can refer to the unofficial dashboard made by @Adam_Tehc.
From the data, Pump.fun's daily buyback amount reaches $1 million - $2.5 million, and the scale is growing rapidly—this forms a complete "revenue flywheel": Pump.fun uses revenue to buy back tokens → attracts more users, driving up trading volume and fees → the platform gains higher revenue, further increasing buyback efforts, and keeps the flywheel spinning.
Currently, the mainnet liquidity pool for PUMP has a capital scale of about $20 million - $30 million, and such buyback efforts are enough to offset the selling pressure from existing holders. In addition, the liquidity pool is paired with USDC, which also enhances resistance to SOL price fluctuations.
From the P/E ratio data compiled by @jermywkh, compared to competitors with higher market caps but lower revenues, Pump.fun is severely undervalued. If the market environment improves, PUMP is expected to achieve valuation parity.
Competitive Landscape
The core difference between Pump.fun's "flywheel effect" and recent competitors like Bonk and Heaven Dex lies in its "native community" and "ecosystem culture" already established in the Solana Meme coin sector.
These competitors lack past performance support and sufficient profit reserves. In contrast, the Pump.fun team, with its established ecosystem and past achievements, holds a huge first-mover advantage in future development.
Now, with the launch of a fully functional Pump.fun mobile app, the introduction of livestreaming, and a significant increase in creator fees, Pump.fun has further solidified its position as the "preferred platform for Meme coin issuance and trading"—we will break down these initiatives in detail below.
Personally, I think a major highlight of Pump.fun is that it "does not force developers, traders, or ordinary users to operate in a specific way," but rather lets the community decide the product's direction and potential uses. However, in terms of "providing better tools for developers to build projects based on Pump.fun," there is still room for improvement.
In terms of capital reserves, Pump.fun had already achieved about $800 million in revenue before buybacks, plus $500 million raised during the PUMP issuance phase, so the team still holds about $1.3 billion in funds—a scale unmatched by any competitor.
To briefly summarize the current market share: Pump.fun has regained more than 80%-90% of market dominance, Bonk's lead continues to weaken, Heaven Dex had a brief rise but quickly faded, and Believe is hardly a competitive threat.
Key Project Analysis
Ascend: A New Solution to 10x Creator Income
The biggest pain point in Meme coin issuance is "difficult to sustain the ecosystem after the hype fades." The core goal of the Ascend project is to provide creators with continuous motivation by "increasing creator fees by 10 times"—giving them a stable source of income that can be used independently for long-term token promotion.
On Pump.fun, token issuance is completely free, and during the "pre-binding stage" (token market cap $0-$85,000, calculated at SOL price of about $200), creators can get a 0.3% share of trading volume as fees.
As for the fee structure: Pump.fun charges a 0.93% fee (close to 1%) during the pre-binding stage, and a fixed 0.05% fee after binding. In addition, there is an extra 0.2% liquidity pool (LP) swap fee.
Creator fees dynamically adjust as the token market cap grows: when the market cap is in the $10 million - $11 million range, the fee floats between 0.3%-0.9%; when the market cap approaches $20 million, the fee gradually drops to 0.05% (still calculated at SOL about $200).
This mechanism brings significant changes: in the low market cap stage (below $10 million), fees are heavily tilted toward creators, and many new token creators have gained extremely high returns from this. In the past, tokens "remaining in the low market cap range for a long time" would be seen as a bearish signal; now, this may instead become a bullish signal—because creators have a stronger incentive to maintain the token ecosystem.
Theoretically, when the token market cap reaches a high level, large traders do not need to worry about high fees (they can safely increase trading volume); however, there are not many high market cap tokens to verify this at present. It is worth noting that tokens issued before the launch of the Ascend project can now also receive higher fee shares—this is a major positive for existing token ecosystems.
For reference, the chart below shows the changes in creator fees for popular tokens before and after the Ascend project.
Glass-Full Foundation
Earlier, the Pump.fun team launched the "Glass-Full Foundation," planning to use part of the revenue to buy back popular tokens on the platform and include these tokens in the platform's balance sheet.
Although this move is quite sincere, in essence it is just "small-scale support for the ecosystem," more like a short-term strategy to counter Bonk's similar competitive plan at the time—a month has passed without new buybacks from the foundation, which confirms this. However, the community's response to the foundation remains positive.
So far, the foundation has bought back $1.6 million worth of popular Pump.fun tokens, with an overall loss of only 10%; and these tokens are unlikely to be sold, which is equivalent to a disguised "burn" (reducing circulating supply).
The tokens bought back include: TOKABU, USDUC, NEET, DOLLO, INCEL.
Livestreaming and CCMs (Creator Capital Markets)
Pump.fun recently released growth data for its livestreaming service—a new livestreaming platform usually finds it hard to quickly gain user recognition, but Pump.fun's performance is outstanding, and the data is enough to prove its appeal.
The optimization of creator fees not only greatly incentivizes "hot event livestreams," but also attracts "non-crypto streamers" to try this new way of monetizing traffic: on traditional livestreaming platforms, streamers not only face fierce competition, but also need to meet "minimum follower count" and "minimum viewer count" thresholds to monetize, and even after monetizing, high returns are not guaranteed.
But on Pump.fun, streamers can stand out more easily—they can quickly attract attention through "token-related interactions," leverage hot events for traffic explosions, and then earn high returns through creator fees and initial token supply (if they choose to sell for profit).
I believe that "micro-influencers joining Pump.fun livestreams" is just beginning: on one hand, token issuance on Pump.fun is completely free; on the other hand, livestreaming can be easily started via the mobile app—this low-threshold model will drive continued demand growth for this scenario.
I also plan to start livestreaming on Pump.fun soon; after team research, we hope Pump.fun can provide more support for streamers: such as better development tools (to facilitate building features based on the platform), more detailed data analytics, and more livestream-specific features.
Mobile-First Strategy: Focusing on Top Traders and Developers
Pump.fun has always emphasized "mobile-first," and has integrated rich social features into its native app: including KOL / top trader leaderboards, token-specific chat rooms (app-only), live chat during livestreams, and even private messaging between users.
It is not hard to foresee that as user penetration increases, these social features will continue to be optimized, further strengthening Pump.fun's positioning as the "preferred platform for Meme coin trading and issuance."
It should be noted that developers are the core of the Meme coin ecosystem—without developers, there are no new tokens. In the future, Pump.fun is likely to increase support for developers: for example, by promoting quality creators and providing them with exclusive display platforms similar to "KOLSCAN."
Summary and Outlook
The future of Pump.fun is bright: community activity is high, and the tokenomics are logically sound; through "protocol design that fits the ecosystem" and "transparent communication," Pump.fun has undoubtedly regained community trust.
Although PUMP tokens won't be unlocked until July 2026, there is still huge growth potential in the future.
