Solana-based memecoin launchpad Pump.fun has experienced a substantial decline in tokens graduating from the platform as the latest memecoin frenzy fizzles out.
Pump.fun tokens enter a bonding curve upon creation, where their price increases as more tokens are purchased. When a token’s market cap reaches approximately $100,000, it “graduates” and is listed on the decentralized exchange Raydium. Pump.fun then deposits around $17,000 worth of liquidity into Raydium’s pool and burns the corresponding liquidity provider tokens to ensure the liquidity remains locked and to reduce the risk of rug pulls.
Pump.fun tokens had been riding high on the latest memecoin wave following the high-profile memecoin launches from President Trump and First Lady Melania Trump in January, coming to a crescendo after Argentina President Javier Milei’s controversial token launch and Barstool Sports founder Dave Portnoy memecoin shenanigans earlier this month.
A record 71,735 tokens were launched via Pump.fun on Jan. 23, according to a Dune Analytics dashboard, just a few days after Donald Trump unveiled his own official memecoin and was inaugurated as President. That coincided with record daily trading volumes for Pump.fun graduated tokens of over $3 billion.
However, the number of daily token launches has since collapsed to nearly a third of that January peak, with 25,385 tokens launched on Feb. 26 following the sharp decline.
Pump.fun tokens launched by date. Image: Dune Analytics.
A total of 24,008 tokens made it on to Raydium last month. However, as we near the end of February, the number of tokens graduating this month has also collapsed to 11,532 — less than half the January figure — in a trend that appears to be accelerating. Last week, 2,184 tokens graduated compared to just 717 this week so far, as community member nooman.eth first noted.
With the sheer volume of tokens being created, the percentage graduating was also already on the decline, having peaked at 2.1% back in June 2024. By the time daily token launches and trading volumes had peaked, that was down to 1.6%, subsequently dropping to near all-time lows of 0.7% earlier this week, according to The Block’s data dashboard.
Why are Pump.fun’s numbers dumping?
Memecoins have been one of the hardest hit sectors in the recent crypto market sell-off as traders grew tired of the perpetual extraction of multiple token pump and dumps. The GMCI Meme index, representing the largest memecoins by market cap, has fallen more than 30% over the past month and 45% year-to-date as the hype came to an end.
The firm has also faced various legal challenges recently, with law firms demanding earlier this month that the platform remove memecoins that infringe upon their clients’ intellectual property, including company names and logos. A class action lawsuit in January also sued Pump.fun for allegedly offering and selling “highly-volatile” unregistered securities to investors.
The Wednesday hack of Pump.fun’s X account to promote fraudulent tokens and a backlash against the apparent testing of its own AMM feature, potentially to replace Raydium, aren’t helping matters.
Pump.fun has also been criticized for its level of fee extraction. The platform has earned over 3 million SOL in total revenue since its launch in January 2024, according to data from crypto investment firm Hashed, having facilitated the deployment of more than 8 million tokens.
Similar to its other metrics, Pump.fun daily revenue peaked at $15.4 million on Jan. 25, subsequently dropping to just $1.1 million on Wednesday.
As of Feb. 26, Pump.fun has deposited 2,433,286 SOL to crypto exchange Kraken and sold a further 264,373 SOL for USDC, according to the blockchain analytics platform Lookonchain. SOL is currently trading for around $140, per The Block’s Solana Price page, having dropped more than 40% over the past month.
SOL/USD price chart. Image: The Block/TradingView.
The Block reached out to Pump.fun for comment.
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