PumpFun Hits 1.3M Active Addresses in August, Suffers $66M Losses

PumpFun had over 1.3 million active addresses during August. However, users on the platform lost a total of $66 million, despite the high trading volume.

PumpFun Traders Record $66M Loss Despite Increased Activity

In a recent X post, Crypto researcher Defioasis highlighted that PumpFun created 595,000 new tokens in August. This helped the platform reclaim the top position among Solana launchpads. 

Profitability remained elusive despite the fact that almost 1.35 million addresses were actively trading these tokens. More than 60% of traders ended the month in the red, and not a single trader made more than a million dollars.

Approximately 65.4% of addresses, or roughly 882,000 wallets, experienced a loss between $0 and $1,000, averaging a $73.41 loss per wallet. While seemingly minor at the individual level, this group alone accounted for over $64 million in total losses. 

Approximately 882,000 wallets, or 65.4% of addresses, experienced losses ranging from $0 to $1,000, with an average loss of $73.41 per wallet.  Although they may not seem significant on an individual basis, this group alone was responsible for over $64 million in losses.

According to Defioasis, profits were not absent but were outweighed by losses. Around 416,000 addresses earned modest gains of up to $1,000, averaging just under $100 each. 18,000 wallets also made between $1,000 and $10,000. Only 1,665 addresses experienced increases of more than $10,000. In aggregate, traders ended the month with net losses of $66 million.

This comes after PumpFun repurchased $58.7 million worth of PUMP tokens to boost the token price. The platform has now bought back over $66.6 million in total tokens. In an effort to lessen selling pressure, this strategy absorbed more than 17.5 billion tokens at an average price of $0.003765.

PumpFun Continues to Grow in Revenue And Market Share

As CoinGape previously reported, PumpFun has surpassed $800 million in lifetime fees, derived mainly from its 1% swap fee on token trades. Recent data from Jupiter also highlighted that the platform captured a 46.6% share of the Solana launchpad market. Rival LetsBonk trailed with a market share of under 9% and just $97.8 million in activity.

Additionally, according to Dune data, there are now over 71,000 PUMP holders, with retail traders controlling the distribution. Currently, 46% of ownership is held by smaller wallets with fewer than 1,000 tokens. This implies that grassroots involvement has expanded.

This growth comes despite the pressure from its class-action lawsuit filed earlier this year. Plaintiffs allege the platform operates like an “unlicensed casino.” The amended filing, made in July, claims total investor losses have reached $5.5 billion and likens the platform’s token mechanics to a “rigged slot machine.”