Memecoins attract users, but platforms reap the profits: Report

A recent report from Galaxy Research highlights that while memecoins successfully attract new users to the cryptocurrency space, the substantial profits are primarily garnered by the platforms facilitating their launch and trade. The report notes that most traders experience losses in this volatile market, while venture infrastructure providers, such as launchpads like Solana's Pump.fun, decentralized exchanges, and trading bots, earn significant revenue from memecoin activities. As of now, Solana's Pump.fun has enabled the launch of 13 million tokens, representing a 300% growth in less than two years, with a total fully diluted market value of $4.8 billion. Despite their lack of utility beyond cultural significance, platforms like Pump.fun thrive; its recent token sale generated substantial revenue, underscoring the trend of rapid trading and short holding periods driven by automated bots. In the past month alone, Pump.fun has reported around $120 million in fees, marking its strong position in the memecoin market.

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