- Trader Joe DEX is building a protocol to rival existing memecoin generators.
- Memecoin generators are collectively averaging $1 million in daily revenue.
- The top meme coins are collectively worth $42.6 billion.
Decentralised exchange Trader Joe, which counts $135 million in user deposits, is targeting the red hot memecoin market with a suite of new products.
The project revealed three new additions to its technology stack in a Thursday X post ― a Token Mill, a Bid Barn, and an Aggregator.
The Token Mill is Trader Joe’s memecoin generator and is the exchange’s answer to lucrative incumbents like Solana’s Pumpdotfun and Tron’s Sunpumpdotmeme. Those protocols collectively average $1 million in daily revenue.
Token Mill has design elements similar to existing memecoin generators. It uses bonding curves to set the prices of newly created tokens to a certain limit before they begin trading on a DEX.
Bonding curves track the price of an asset as its supply shrinks. Crypto devs often use them to create a price discovery mechanism that causes the price of a token to increase as more traders purchase it.
Still, the co-founder of Trader Joe, the pseudonymous Crypto Fish, said Token Mill is more than a memecoin generator.
“Token Mill is designed to launch any type of coin, not just memecoins,” Crypto Fish said Thursday on X. “So think less memes and autism [sic] and more of a nerdy creative playground for token creators.”
Memecoin wars
On Wednesday, the three main memecoin generators ― Pumpdotfun, Sunpumpdotmeme, and Fourdotmeme ― earned more than $820,000 in fees. Collectively, they’ve averaged $1 million in revenue in the last week.
Fourdotmeme, the most recent of the group, is on the BNB Chain. It launched on August 21.
Solana’s Pumpdotfun has dominated the memecoin generation market since its launch in January but now faces competition from its Tron-based rival.
On Wednesday, Sunpumpdotmeme eclipsed Pumpdotfun in daily revenue for the first time, earning nearly $600,00 against the latter’s $360,000.
Cashing in on memes
These protocols have cashed in on the popularity of memecoins among crypto traders this year.
The trend even extended to celebrities earlier in the summer, who launched dozens of tokens to short-lived buzzes.
Memecoins are a $42.6 billion crypto market sector, according to CoinGecko data that only tracks major tokens listed on centralised exchanges.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
