During January, meme coins saw a rapid rise in popularity, attracting widespread investor enthusiasm and optimism within the crypto community.
However, the momentum quickly faded as negative sentiment grew, fueled by increasing scams and questionable projects. This abrupt change has severely impacted platforms like Pump.fun, which specializes in meme coin launches and trading, leading to significant declines in both activity and revenue.
Inside Pump.fun’s Rapid Decline
Pump.fun gained users quickly thanks to its simplicity and low-cost token launches. Daily revenue peaked in late November but has declined since February as the crypto market weakened and scam reports surged. This led to a sharp drop in demand for meme coins and Pump.fun's services.
Using onchain data, we've analyzed the platform’s metrics to understand the depth and implications of this downturn. The data paints a clear picture of a severe contraction, both in revenue and user activity.
Pump.fun’s Revenue Plunges Dramatically
One of the most notable findings in our analysis is the sharp decline in Pump.fun’s revenue. In late January, the platform’s 30-day moving average hit a record $4 million. However, that figure has since dropped dramatically, falling below $2 million.
Currently, its daily revenue stands at around $860,000—a plunge of more than 78% since late January. This figure represents the platform's lowest earning level in five months.
Fewer Tokens, Less Enthusiasm
Revenue isn’t the only metric signaling trouble for Pump.fun. The platform has also experienced a substantial reduction in the number of tokens created by its users.
At the peak of meme coin enthusiasm in January, about 66,000 tokens were created in a single day. This number has since dropped dramatically by 60%, falling below 26,000 tokens daily.
The current 7-day moving average sits around 23,800 tokens per day, underscoring the significant decline in user-generated content. We haven’t seen figures like this since mid-October!
This reduction in new token creation directly affects the platform's token graduation rate—the percentage of tokens advancing successfully to higher levels of investor interest and activity.
The graduation rate has now dropped below 0.75%, its lowest point in six months—a sharp decline from the approximately 1.8% recorded 45 days ago.
At its peak, the platform graduated over 1,170 tokens a day, a figure that has now dwindled to just a fraction of its former level.
Market Caps: A Stark Reality Check
The market capitalization of tokens launched on Pump.fun over the last 30 days further illustrates the declining investor interest and market confidence. A staggering 98% of these tokens have failed to surpass a market cap of $100,000. Merely 1.2% of new tokens achieved modest success with market caps between $100,000 and $500,000.
Only 29 tokens, less than 0.32% of the total, managed to reach market caps between $1 million and $5 million. Even more telling is that only four tokens have crossed the significant milestone of a $10 million market cap.
This situation starkly contrasts with the early excitement around meme coins, when some tokens quickly surged to market caps exceeding $1 billion.
Looking Ahead
The decline of Pump.fun clearly demonstrates the volatile and speculative nature of meme coins and highlights broader market sensitivities. Confidence in these tokens eroded significantly following the launches and subsequent scandals of projects like $LIBRA and $Enron, which further undermined trust in high-risk investments. While meme coins once captivated investor imagination, these controversies have served as a sobering reminder of their inherent risks and instability.
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