Pump.fun’s revenue has plunged to its lowest level in four months, coinciding with a sharp decline in its token graduation rate. The slowdown highlights waning interest in Solana-based memecoins as the broader crypto market cools off from its recent highs.
Revenue Plummets Amid Declining Memecoin Interest
According to DefiLlama data, Pump.fun’s protocol fee revenue stood at $791,500 as of March 17—a staggering 94% drop from its peak of $15.38 million on January 25. This marks the platform’s lowest single-day revenue since November.
In addition to revenue declines, the memecoin frenzy on Pump.fun appears to be fading, as indicated by the platform’s dwindling graduation rate. Pump.fun’s graduation rate refers to the percentage of memecoins that successfully meet the platform’s liquidity and trading requirements to be listed on Solana (SOL) decentralized exchanges.
Dune Analytics data shows that the graduation rate is currently at 0.98%, down from 1.62% on January 20. Notably, the rate has remained below 1% for over a month, since February 17, further suggesting that enthusiasm for Solana memecoins is cooling.
Memecoin Bubble Burst and Market Impact
The slowdown on Pump.fun aligns with broader trends in the crypto market. According to Matrixport, the burst of the memecoin bubble following its peak in January has contributed to a $1 trillion decline in total crypto market capitalization, dropping from $3.6 trillion to $2.6 trillion.
This downturn has been fueled by high-profile pump-and-dump schemes, including the LIBRA memecoin controversy involving Argentine President Javier Milei and the politically affiliated TRUMP and MELANIA tokens. These incidents have shaken investor confidence and led to reduced trading activity in the memecoin sector.
Pump.fun’s Revival Efforts
In response to its revenue decline, Pump.fun is rolling out new features aimed at reviving interest and boosting liquidity. The platform recently launched a mobile app and has teased plans for an automatic market maker (AMM) designed to facilitate native trading and enhance liquidity.
While these efforts may help stabilize Pump.fun’s ecosystem, the platform’s future success largely depends on whether it can rekindle interest in memecoins amid an increasingly cautious market environment. Investors and traders will be watching closely to see if these new initiatives can reverse the platform’s downward trajectory.
