Pump.fun Activity Tanks as Traders Grow Tired of Meme Coins – Temporary Dip or the Death of the Meme Coin Meta?
Solana-based meme coin launch platform Pump.fun is seeing a rapid decline in activity as crypto traders move grow increasingly wary of meme coins.
Weekly trading volume on Pump.fun has been declining for five straight weeks after peaking in mid-January at $3.3 billion. This week so far, the Pump.fun platform has handled $400 million in trading volume. At the current rate, this week’s volume will be substantially lower than last week’s $1.2 billion figure.
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The number of tokens launched using the Pump.fun platform has also seen a dramatic decline. Yesterday, 26,587 tokens were launched through Pump.fun, down 63% from the January 23 peak of 71,735 tokens launched.
On Pump.fun, tokens “graduate” from the platform and are automatically listed on the Raydium decentralized exchange once they reach a market capitalization of roughly $100,000.
In January, 24,008 tokens graduated from Pump.fun. This figure is down to 11,564 in February, which is a 51.8% decrease.
Although the net benefit of Pump.fun on the cryptocurrency ecosystem is a highly contentious topic of debate on social media, Pump.fun has been a massive success for its founders, as it has brought in over 3 million SOL in revenue since launch.
Pump.fun’s decline comes amidst broader crypto market crash and poor meme coin sentiment
The decline in activity on Pump.fun is likely a result of multiple factors. The cryptocurrency market has been through a rough patch recently, with 60 out of the top 100 largest crypto assets by market capitalization seeing a price drop of 25% or more in the last 30 days.
The largest Solana-based meme coins have performed extremely poorly in the same time period. Here’s a quick breakdown of the 30-day performance from the top 5 largest meme coins on Solana:
TRUMP: -56%
BONK: -47%
WIF: -48%
SPX: -47%
PENGU: -52%
On top of the overall decline in the cryptocurrency market, widespread rug pulls and insider trading schemes have significantly deteriorated the sentiment surrounding meme coins.
Arguably the biggest hit came from LIBRA, a token that was briefly promoted by Argentina’s president Javier Milei before he distanced himself from the project. Following its launch, LIBRA displayed a rapid price increase to $4.5, only to crash to $0.13 (a 97% drop) in the space of just 7 hours.
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