According to Dune Analytics, volume plunged from $119 billion in January to just $44 billion in February. This is the lowest level since October 2024.
Despite the sharp decline, February still ranked as the platform’s fourth-highest month since its launch in early 2024. Let’s discover more about Pump Fun.
Memecoin Hype Fades as Scandals Shake Investor Confidence
The slowdown comes as memecoins, once a hot trend in the crypto bull market, face growing skepticism. Reports of insider trading, rug pulls, and pump-and-dump schemes have shaken investor confidence, causing many to think twice before diving in.
According to CoinTelegraph, Pump Fun co-founder Alon Cohen acknowledged the downturn, linking it to the broader crypto market slump. “When the market trades down, altcoins as well as memecoins trade down, and activity across crypto—including on Pump Fun—slows down,” he said. However, Cohen noted that Pump Fun’s share of revenue in the on-chain ecosystem has remained steady, with nearly $74 million in revenue over the past 30 days.
Source: Dune Analytics
One of the biggest black eyes for the memecoin market was the so-called “Libragate” scandal. A token launched by a group that included Hayden Davis gained traction after an endorsement from Argentine President Javier Milei. But what seemed like a golden opportunity quickly turned into a disaster. The project turned out to be a $107 million rug pull, leaving 86% of investors with losses exceeding $1,000.
Regulators and Scandals Dim Memecoin Craze
The memecoin craze has also caught the eye of regulators. The U.S. SEC recently confirmed that memecoins aren’t classified as securities but made it clear that fraud won’t be tolerated. Meanwhile, industry experts warn that memecoins have lost their original charm.
WOW.
The SEC just said that meme coins are generally NOT considered securities under US federal law.
They also said that meme coins have “limited or no use” and do not need to be registered with the SEC.
This is a MASSIVE statement by the SEC. pic.twitter.com/7KpB2c2481
— The Kobeissi Letter (@KobeissiLetter) February 27, 2025
Adding to these concerns, new token listings on Pump Fun have also slowed to a trickle. The platform hit a peak of nearly 1,200 daily token launches on January 24, but by early March, that number had fallen below 300. With trust in memecoins hanging by a thread, many traders are staying on the sidelines, waiting to see how the market shakes out.
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