Galaxy Digital Report Shows Memecoin Platforms Profit While Traders Lose Money

TLDR

• Galaxy Research reports that memecoin platforms like launchpads, exchanges, and trading bots capture millions in revenue while most traders lose money
• Pump.fun has launched nearly 13 million tokens on Solana and generated over $120 million in fees in the past 30 days
• Median hold times for Solana memecoins dropped to 100 seconds from 300 seconds a year ago, showing bot dominance
• Trading platform Axiom earned over $200 million in fees with fewer than 10 employees from memecoin activity
• Pump.fun’s PUMP token sale raised $500 million in under 12 minutes in July, offering 125 billion tokens

Galaxy Digital released a report on Wednesday stating that memecoins have become a permanent part of the crypto economy. The research shows these tokens attract new users to blockchains but the financial benefits flow mainly to infrastructure providers.

The report was authored by Galaxy Research analyst Will Owens. He argues that memecoins now represent a cultural and economic force beyond early tokens like Dogecoin and Shiba Inu.

Pump.fun emerged as a major platform in this ecosystem. The Solana-based launchpad debuted in early 2024 and allows anyone to create a memecoin in minutes.

Out of 32 million tokens on Solana, nearly 13 million launched through Pump.fun. This represents a 300% increase in under two years.

Tokens on Pump.fun have a combined fully diluted market value of $4.8 billion. Galaxy Research described the platform as having “industrialized token creation on Solana.”

Between August 11 and August 17, Pump.fun generated $13.48 million in revenue. This marked its strongest week since February according to DefiLlama data.

On September 14, the platform handled over $1 billion in trading volume. The volume reached $1.02 billion after recording $942 million the previous day.

Over the past 30 days, Pump.fun generated approximately $120 million in fees. The platform launched its own PUMP token on July 12 in a sale that raised $500 million in under 12 minutes.

Trading Behavior and Bot Activity

The report revealed that median hold times for Solana memecoins collapsed to about 100 seconds. This declined from 300 seconds a year earlier.

The data highlights the dominance of bots and scalpers in memecoin trading. These automated systems execute trades faster than human traders can respond.

Trading tools like BONKbot and Trojan earn revenue by charging users to automatically snipe new tokens at launch. These services help traders attempt to profit from new token releases.

Platform Revenue Models

Trading platform Axiom generated over $200 million in fees with fewer than 10 employees. The company scaled to millions in monthly revenues by collecting fees from memecoin traders.

Decentralized exchanges and launchpads capture transaction fees every time users trade. These platforms profit regardless of whether individual traders make or lose money.

Galaxy Research notes that memecoins consistently generate some of the highest liquidity and fee volumes in the industry. Their volatility makes them a reliable revenue source for exchanges and liquidity providers.

The report states that users interact with memecoins as traders and community members. They build narratives, memes and digital identities around the tokens.

Galaxy’s research shows memecoins now rival mainstream assets in terms of liquidity and fee generation. The tokens have moved beyond being a market sideshow.

Owens believes memecoins are reshaping crypto infrastructure by driving experimentation in token issuance. They help pressure-test blockchain ecosystems at scale through high transaction volumes.

The report acknowledges most memecoins remain speculative and short-lived. However, Galaxy concludes the sector is no longer a passing fad and has become a structural component of crypto.

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