Pump.fun’s protocol fee revenue has seen a staggering decline of 92%, plummeting from a peak of $15.38 million on January 25 to just $1.1 million today, according to DefiLama. This sharp downturn coincides with a broader slowdown in activity on the platform and the Solana network following recent controversies in the meme coin space.
Declining Activity on Pump.fun
Apart from the steep drop in fee revenue, token launches on Pump.fun have also witnessed a significant decline. On January 23, over 70,000 tokens were launched on the platform, but by February 26, that number had fallen to approximately 25,000, as per Dune data. This decline aligns with a broader trend in the meme coin market, which has seen a substantial reduction in market capitalization.
Meme Coin Market Faces Heavy Losses
Over the past three weeks, the meme coin market has shed over $44 billion in value. While meme coins enjoyed a remarkable 212% annual gain in 2024, largely driven by Pump.fun’s success, the sector has struggled in 2025 as investor sentiment has shifted.
Initially, meme coins were perceived as “fair launch” opportunities, where retail investors had the same chance to profit as institutional players. However, recent events, such as the LIBRA fiasco involving Argentine President Javier Milei, have exposed the speculative and manipulative aspects of the meme coin space. The Milei coin, for instance, skyrocketed from a $1 billion valuation to $4 billion, highlighting the sector’s vulnerability to scams and price manipulation.
Pump.fun Hit by Fraud and Security Breach
Adding to its woes, Pump.fun has been the target of fraud. On February 26, the project’s official X (formerly Twitter) account was compromised and used to promote a fake governance token called PUMP alongside other fraudulent coins. This security breach has further damaged Pump.fun’s reputation, raising concerns about the platform’s reliability and security.
Pump.fun’s dramatic decline in fee revenue and token launches reflects a broader shift in market sentiment toward meme coins. With increasing concerns over fraud, manipulation, and security, investors are becoming more cautious. As the meme coin sector navigates these challenges, Pump.fun will need to address trust and security issues to regain its momentum in the volatile crypto space.
