Trading activity on Solana-based token launchpad Pump.fun dropped sharply

The platform's total volume declined from $119 billion to $44 billion, with just $2.1 billion in trades over the past four days.

Solana-based token launchpad Pump.fun saw a steep drop in trading activity, with volume plummeting 63% from January to February 2025, according to data from Dune Analytics.

The platform’s total volume slid from $119 billion to $44 billion, with only $2.1 billion in trades over the past four days.

New token launches on Pump.fun also slowed down. At its peak in January, nearly 1,200 tokens were launching daily, but that number dropped to less than 300 per day by early March.

Trading volume for its “graduated tokens”—those that reached $100,000 in market cap to move to Raydium—plunged 94% from January highs of $3 billion to about $170 million. The platform’s token graduation rate—which tracks new coins reaching $100,000 in market cap to move to Raydium—also slowed, dropping from 1.85% to 0.83% weekly.

Despite the downturn, February’s trading volume remains the fourth-highest month for Pump.fun since its launch in January 2024.

Pump.fun co-founder Alon Cohen attributed the slowdown to broader market conditions, explaining that when the market dips, altcoins and memecoins follow suit. However, he noted that Pump.fun’s share of revenue in the on-chain ecosystem remained stable. Over the last 30 days, the platform pulled in $74 million in revenue.

The downturn hints at trader fatigue within Solana’s memecoin ecosystem. Months of hype have been followed by growing distrust, fueled by rug pulls, influencer-driven schemes, and insider trading groups. Speculative surges like those seen with presidential, influencer, and AI-themed tokens often fizzle out as the risks become clearer.

The controversy surrounding “Libragate” is a prime example. The token, backed by a group including Hayden Davis, shot up after receiving Argentine President Javier Milei’s endorsement. But it turned into a $107 million rug pull, with 86% of investors losing at least $1,000.

Looking ahead, Pump.fun isn’t standing still. It recently launched a mobile app and teased a native automated market maker.

Regulators are also taking note. In a statement, the SEC clarified that memecoins aren’t securities, but warned that fraud and market manipulation will still be pursued.