Pump.fun’s trading activity nosedived 94% since January 2024, plummeting from $3 billion daily to $170 million. The drop reflects fading enthusiasm for speculative memecoins on Solana. Analysts link the decline to rampant scams, including rug pulls and influencer exploitation, eroding investor trust. Token graduation rates halved, sinking from 1.85% to 0.83% weekly.
From $3 Billion Peaks to $170 Million low
January’s frenzied $3 billion daily volumes collapsed by February 2025, sinking to $44 billion monthly. By March, activity dwindled further, hitting four-day totals of $2.1 billion. Despite this, Pump.fun’s lifetime revenue remains robust at $570 million since its 2024 launch. However, new token listings crashed from 1,200 daily to under 300, signalling shrinking creator interest.
Memecoin Mania Cools Amid Scandals and Scams
Once a crypto bull run staple, memecoins now face backlash after high-profile fraud cases. For instance, the “Libragate” scandal drained $107 million via a token endorsed by Argentine President Javier Milei. Additionally, 86% of investors suffered over $1,000 losses. “Memecoins became extraction tools for insiders,” said Fideum CEO Anastasija Plotnikova, criticising rampant pump-and-dump schemes.
Mobile App and AMM Launch
Pump.fun now pivots to sustainability, launching a mobile app and teasing a native AMM. These moves aim to counter slowing growth as insiders question its reliance on speculative trading. Co-founder Alon Cohen blamed broader market conditions, noting, “Altcoins slump when Bitcoin trades down.” Still, the platform’s $74 million monthly revenue underscores residual demand.
Regulatory Scrutiny
The SEC clarified on February 27 that memecoins aren’t securities but vowed to police fraud. This follows rising complaints about insider rings and sniper groups manipulating prices. Following this, traders increasingly avoid volatile tokens, opting for established cryptocurrencies. “The ecosystem turned toxic,” Plotnikova added, urging tighter oversight to protect retail investors.
Can Pump.fun Survive the Post-Hype Landscape?
Despite turmoil, Pump.fun’s February volume ranks fourth-highest since its debut. Yet, sustaining momentum requires innovation beyond memecoin mania. Transitioning to decentralised tools like an AMM could help, but skeptics argue the platform needs another hype cycle. For now, its fate hinges on balancing growth with credibility in a wary market.
Concluding Words
Pump.fun’s steep decline mirrors crypto’s cyclical nature, where speculative peaks often precede brutal corrections. While its revenue remains impressive, evolving beyond memecoin dependency is critical. Regulatory clarity and ethical practices may determine whether it becomes a lasting player or a cautionary tale. Investors, meanwhile, watch for signs of revival or retreat.
