Pump.fun volume drops by 63% in February
Trading activity on Pump.fun, a prominent token launchpad within the Solana ecosystem, has experienced a significant downturn, with a staggering 63% drop in trading volume from January to February 2025, as reported by data from Dune Analytics. This downturn is reflective of broader market trends as memecoins face intensified scrutiny following a spate of scandals.
The platform’s trading volume plummeted from $119 billion to $44 billion over the first two months of 2025, with a mere $2.1 billion in trading activity observed in just the past four days. In addition to the overall decline, the rate of new token listings on Pump.fun has also decreased dramatically, from nearly 1,200 tokens daily at the peak on January 24 to falling below 300 per day by early March.
Despite this significant decline, Pump.fun’s February trading volume remains the fourth-highest since its launch in January 2024, though it marks the lowest level since October 2024. According to co-founder Alon Cohen, the slowdown can be attributed to the wider downtrend in the crypto market. He stated that "when the market trades down, altcoins and memecoins also decline, leading to reduced activity across platforms like Pump.fun." Importantly, Cohen noted that the platform’s revenue share within the overall on-chain ecosystem has remained stable, with recent reports indicating approximately $74 million in revenue over the last month.
Declining Interest in Memecoins
The trading activity surrounding memecoins—a trend that had spurred market excitement during the recent crypto bull run—has notably diminished amid increasing fears of fraudulent activities, including insider trading and rug pulls. The notorious "Libragate" incident exemplifies these fears, wherein a token launched with the involvement of the controversial figure Hayden Davis saw a massive spike after an endorsement from Argentine President Javier Milei. Unfortunately, it later became known as a $107 million rug pull, with a staggering 86% of investors incurring substantial losses, averaging over $1,000 each.
According to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, the landscape of memecoins has transformed dramatically. She remarked that “memecoins have evolved from community-driven social experiments to a chaotic environment dominated by value extraction from retail investors.” Plotnikova highlighted that the traits that once defined memecoins—organic growth and community engagement—have been overshadowed by insider collusion and manipulative trading schemes.
Additionally, the U.S. Securities and Exchange Commission (SEC) has taken note of the situation. In a statement released on February 27, the SEC clarified that while memecoins do not qualify as securities, fraudulent activities associated with them will be actively policed.
While the current state of memecoin trading raises alarm, discussions on building a safer and more transparent ecosystem continue to be crucial. As the market matures, the focus may shift toward establishing regulatory frameworks that protect investors while fostering innovation within the blockchain space.
