Pump.fun Trading Volume Plunged 63% in February

Trading volume for Pump.fun, a Solana-based token-issuing platform, fell sharply in February, the data showed.

The trading volume of token-issuing platform Pump.fun, used for tokens on Solana, decreased significantly in February, according to a recent analysis.

According to a Monday analysis by crypto analytics platform Dune Analytics, Pumpfun’s trading volume in February was $44 billion, a 63% decline from the previous month.

The analysis comes amid a sharp decrease in new token listings on the platform.

New token listings on Pumpfun dropped to less than 300 per day in March, a significant decline from January, which saw an average of nearly 1,200 new tokens listed daily.

This is being seen as a consequence of the diminished interest in the meme coin market.

Recently, there have been ongoing issues with insider trading, rug pulls, and scams in the meme coin sector.

One notable instance is the "Libragate" case, which involved Argentine presidential candidate Javier Milei.

The price of Libra experienced a surge with the support of President Milley and then plummeted rapidly.

Despite the decreased volume, Pumpfun's market share remains substantial, and its earnings are still significant.

According to estimates, Pumpfun's revenue over the past 30 days is around $74 million.

Commenting on the current state of memcoins, Anastasia Plotnikova, CEO of blockchain company Fideum, noted that they initially had a community-driven experimental essence but have now become a revenue-generating avenue for retail investors.

Earlier this year, the U.S. Securities and Exchange Commission (SEC) stated in an official statement that while meme coins are not securities, the commission will be closely monitoring and taking action against any fraudulent activity related to them.

While meme coins themselves are not subject to regulation, the SEC is planning to exert strong pressure on any illegal activity surrounding these tokens.