PumpFun Hits 1.3 Million Active Users, Suffers $66 Million in Losses

TLDR

• PumpFun saw over 1.3 million active addresses in August despite facing significant losses.
• The platform created 595,000 new tokens to regain its top position among Solana launchpads.
• Over 60% of traders ended the month with losses, totaling $66 million across the platform.
• Around 882,000 wallets lost between $0 and $1,000, accounting for more than $64 million in losses.
• PumpFun repurchased $58.7 million worth of PUMP tokens to stabilize the token’s price.

PumpFun saw over 1.3 million active addresses during August. Despite the high activity, users experienced a total loss of $66 million. This comes amid PumpFun‘s efforts to reclaim the top spot in the Solana launchpad market.

PumpFun Sees $66 Million Loss in August

In August, PumpFun created 595,000 new tokens, which helped the platform reclaim its position among Solana’s top launchpads. However, despite nearly 1.35 million addresses actively trading, profitability remained low.

Most traders saw losses, with over 60% finishing in the red. No trader earned more than $1 million in profit. According to crypto researcher Defioasis, the platform experienced heavy losses despite the high trading volume.

Around 65.4% of addresses, or roughly 882,000 wallets, lost between $0 and $1,000. The average loss per wallet was $73.41. Though individually small, this group accounted for over $64 million in total losses.

Approximately 416,000 addresses earned modest gains of up to $1,000. A smaller group of 18,000 traders made between $1,000 and $10,000. Only 1,665 addresses gained more than $10,000, leaving traders with a net loss of $66 million.

Platform’s Token Buyback and Market Share

PumpFun repurchased $58.7 million in PUMP tokens to stabilize the price, boosting the token’s value amid a volatile market. The platform has now repurchased over $66.6 million in total tokens, absorbing over 17.5 billion tokens at an average price of $0.003765.

Despite the challenges, PumpFun captured 46.6% of the Solana launchpad market share. Rival platform LetsBonk trailed with less than 9%. This strong market presence reflects the platform’s significant trading volume and user activity.

Retail Involvement and Legal Pressure

PumpFun now has more than 71,000 PUMP holders, many of whom are retail traders. Smaller wallets with fewer than 1,000 tokens control 46% of the total token distribution. This highlights growing grassroots involvement, despite the ongoing class-action lawsuit against the platform.

The lawsuit, filed earlier this year, claims that PumpFun operates like an “unlicensed casino.” It accuses the platform of rigging its token mechanics, leading to significant investor losses. As the legal battle continues, the platform remains a focal point in the crypto industry.

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