Pump.fun, the Solana-based memecoin launchpad, has seen its native token PUMP surge to a $3 billion market capitalization, hitting a new all-time high of $0.00849. This represents a 71% gain over the past week, making it one of the fastest-moving tokens in the Solana ecosystem. The rally is largely attributed to the platform's reintroduced livestreaming feature, which allows creators to launch and promote tokens in real-time.
Co-founder Alon Cohen claimed that Pump.fun has already surpassed Rumble in terms of average concurrent live streams, reaching approximately 1% of Twitch's market share and 10% of Kick's. The platform's daily buyback program, purchasing around $2 million worth of PUMP tokens daily, has created steady demand and helped restore investor confidence after an initial price drop of over 60% following its ICO.
The livestreaming model has proven highly lucrative for creators, who can earn up to 0.95% of trading fees from their tokens. Recent data shows creator earnings spiking from an average of $250,000 daily in previous months to over $2 million per day in September, with some days exceeding $3 million. High-profile accounts on X have announced plans to livestream on the platform, further driving engagement.
However, analysts have raised concerns about sustainability. Analyst Boot argued that 99% of these tokens lack supply-control mechanisms and typically see prices rise only during active streams before sharply declining afterward. The platform also faces content moderation challenges, having temporarily suspended livestreaming in November 2024 due to inappropriate content including racist and fascist streams before relaunching with new guidelines in April.
