Memecoins attract new users to crypto but most trading profits flow to launchpads, decentralized exchanges and automated bots, not retail traders; Galaxy Research finds memecoin infrastructure captures millions while median hold times collapse to ~100 seconds.
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Memecoins bring users but enrich platforms and bots.
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Launchpad Pump.fun accounts for a large share of Solana token launches and fees.
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Median hold times fell from ~300s to ~100s, highlighting bot-driven trading.
memecoins drive platform revenue, not trader profits — read how launchpads and bots capture value. Learn more from COINOTAG.
What are memecoins doing to crypto infrastructure?
Memecoins are drawing fresh users to blockchains, but the resulting trading volume primarily benefits infrastructure providers—launchpads, DEXs and trading bots—rather than individual traders. Galaxy Research shows these services capture substantial fees and market value while traders face short holding windows and frequent losses.
How do launchpads and exchanges profit from memecoin trading?
Galaxy Research documents that launchpads and decentralized exchanges monetize token creation and immediate secondary-market trading. For example, Solana’s Pump.fun has facilitated nearly 13 million of the platform’s 32 million tokens and now represents a combined fully diluted market value of about $4.8 billion.
Platforms collect primary sale proceeds, listing fees and trading fees. Tools that automate sniping or provide front-running capabilities extract additional revenue from high-frequency activity.
Total token sales on Solana. Source: Galaxy Research
Why are median hold times collapsing and what does that mean?
Median hold times for Solana memecoins dropped to roughly 100 seconds, down from 300 seconds a year earlier. This collapse signals dominance by bots and scalpers that enter and exit positions in seconds to capture micro-profits.
Short holding periods reduce retail traders’ ability to capture upside and increase transaction churn, which raises platform fee revenue but concentrates trading gains with sophisticated infrastructure operators.
Galaxy Research: “The platform has simply industrialized token creation on Solana.”
How concentrated are memecoin revenues?
Revenue is highly concentrated among a few service providers. Axiom, a trading platform, reportedly generated over $200 million in fees with fewer than ten employees, according to Galaxy Research. Other automation tools such as BONKbot and Trojan monetize snipe strategies by charging users to access automated token purchase flows.
Daily revenue from memecoin infrastructure. Source: Galaxy Research
When did Pump.fun scale and what were the headline metrics?
Pump.fun emerged in early 2024 and quickly scaled token creation on Solana. On July 12 it launched its token PUMP, raising $500 million in under 12 minutes via an initial sale of 125 billion tokens. Between Aug. 11 and Aug. 17, Pump.fun reportedly generated $13.48 million in revenue, its strongest week since February. Over a recent 30-day window, DefiLlama metrics show Pump.fun generated about $120 million in fees.
Cointelegraph reported Pump.fun reached over $1 billion in daily trading volume on Sept. 14, recording $1.02 billion after $942 million the previous day.
Frequently Asked Questions
Do memecoins create long-term value for retail traders?
Evidence indicates most retail traders do not capture lasting profits. The market is short-term and high-frequency, with many users losing money while infrastructure captures fees and automation captures front-run opportunities.
How can investors evaluate memecoin-related risks?
Assess token utility, distribution, and liquidity. Monitor on-chain metrics and platform fee flows. Recognize that rapid token launches and ultra-short hold times increase execution risk and favor automated trading.
Key Takeaways
- Memecoins attract users: They bring new participants but often create a short-term gambling market.
- Infrastructure captures value: Launchpads, DEXs and bots collect fees and revenue at scale.
- Retail risk grows: Rapid hold-time decline benefits automated traders and raises execution risk for individuals.
Conclusion
Memecoins are effective user-acquisition tools for blockchains, but Galaxy Research shows the economic benefits skew to launchpads, exchanges and automated trading tools rather than everyday traders. Monitor platform fee flows, tokenomics and on-chain activity to understand where value accrues and adapt strategy accordingly. For continued updates, check COINOTAG coverage.
Published: 2025-10-01 · Updated: 2025-10-01 · Author: COINOTAG
