Momentum is fading fast for Pump.fun, and the once-dominant memecoin launchpad is no longer ‘pumping’ like it used to.
Summary
- Pump.fun revenue recently dipped below $300K, its lowest since September 2024, after peaking at over $7M in January.
- Memecoin traders are ditching the launchpad for rival platforms.
- Pump.fun is facing a class-action lawsuit on top of a growing list of challenges.
According to DefiLlama data, Pump.fun’s daily revenue slipped below $300,000 on July 28, one of its lowest levels since September 2024.
While the figure has slightly rebounded since, the drop adds to a clear downtrend. Back in January, Pump.fun was pulling in over $7 million a day, dominating the industry as the go-to hub for quick token launches. But now, the platform is losing steam, raising the question: why?
Why Pumpfun is struggling
Several factors have emerged in recent months that could be fueling Pump.fun’s broader decline, from courtroom headaches to rising competition.
Legal pressure
Earlier this month, a New York-based firm filed an updated class-action lawsuit on behalf of users who claim they lost funds on the platform.
Originally filed in January, the suit accuses Pump.fun of running a fraudulent scheme that drains users through rigged token launches and insider-driven trades for personal gain. The legal troubles have only intensified ever since, with additional allegations of wire fraud and racketeering now surfacing.
But beyond its legal woes, the declining numbers also come amid a broader shift in trader interest.
Memecoin traders ditch Pump.fun
Traders are backing away from Pump.fun and shifting to newer launchpads like LetsBonk, the Solana-based platform that launched in April and offers similar easy token creation tools.
Over the past month, Pump.fun’s dominance has plunged nearly 70% on tokens deployed on Solana, according to Dune Analytics. In the past 24 hours alone, nearly 20,000 new tokens have been deployed on LetsBonk, while Pump.fun only saw a portion of that at just over 4,600.
The decline also ties back to the poor performance of the recently launched PUMP (PUMP) token. Despite an early uptick after launch, the token has flopped significantly, down roughly 30% over the past week and 59% for the month.
Pump.fun’s user numbers are also cooling fast. Active addresses are down to around 65,000, compared to a January peak of 425,000. As broader activity now slides, so do returns.
Losses top gains on Pump.fun
crypto.news reported earlier in June that more than 60% of pump.fun traders experienced significant losses. Over a six-month period, roughly 2.4 million wallets saw losses of at least $1,000.
Around 30,000 wallets were hit even harder, with losses between $10,000 and $100,000, while 46 wallets lost more than $1 million in on-chain funds.
While Pump.fun still holds a strong market presence, recent trends paint a more negative picture than positive, and it remains to be seen if and how the platform can turn things around.
