Trading volume on Pump.fun, a prominent Solana-based token launchpad, plummeted 63% in February due to a wave of notable memecoin scams, severely impacting investor confidence.
Pump.fun’s trading volume dropped from $119 billion in January to $44 billion in February, marking the lowest level since October 2024. The number of new token launches has also sharply declined, from 58,000 daily at the start of February to just 24,000 by March 4.
Additionally, the platform’s token graduation rate has slipped from 1.85% to 0.83% weekly, indicating a significant drop in the number of tokens achieving the $100,000 market valuation necessary for listing on Raydium.
Despite this declining trading volume—its lowest since October 2024—Pump.fun generated $74 million in revenue over the past 30 days. The platform’s total fees have now reached $580 million after launching over 8.2 million tokens.
Among prominent memecoin controversies, the LIBRA scandal emerged as a significant factor. In mid-February, Argentine President Javier Milei endorsed LIBRA memecoin, initially resulting in a price increase, but a subsequent crash erased over $120 million, leading to allegations of a rug pull.
This incident has shaken trust in the memecoin sector, prompting a broader market decline. In response, Pump.fun is seeking to enhance its features to attract more developers and traders. The platform recently introduced a mobile app and has hinted at launching a native automated market maker (AMM).
An AMM represents a decentralized trading solution that relies on liquidity pools instead of traditional order books. Integrating this system could enhance Pump.fun’s ability to facilitate token trading directly and increase liquidity.
Despite these hurdles, Solana’s decentralized exchanges continue to thrive. Recent data shows that Solana has dominated DEX trading for five consecutive months, outpacing Ethereum by 24% with a total volume of $109 billion. Platforms like Raydium, Meteora, and Orca are maintaining liquidity, supporting Solana’s DeFi ecosystem in the face of memecoin challenges.
