The Revenue Drop At Pump.fun Stems From A Cooling Memecoin Market and Intensified Competitions

Pump.fun, a Solana-based memecoin launchpad, has seen its revenue drop significantly in 2024, hitting lows not seen since September of that year. Daily revenues fell in late July and further declined to less $1M, marking a July-month low. Protocol fee revenue was reported at $791,500, a 94% drop from its peak of $15.38M on January 25, 2025.

This decline aligns with a broader cooling of memecoin frenzy, evidenced by a token graduation rate falling to 0.98% from 1.62% in January. Factors contributing to this include reduced user engagement, with only 194 tokens graduating to Raydium and 7,233 wallets creating new tokens daily, down from a peak of 292K active addresses. Controversies, such as the suspension of the platform’s livestream feature in November 2024 due to extreme content and legal pressures from class-action lawsuits alleging unregistered securities sales, have also impacted its reputation and user base.

Additionally, regulatory bans, like the UK Financial Authority’s restriction in late 2024, and competition from platforms like Four.meme on BNB Chain, have further eroded activity. Despite these challenges, Pump.fun has launched initiatives like Pump Advanced and a mobile app to revive interest, but the platform continues to face a downward trend in trading volume and user activity.

Pump.fun’s revenue peaked at $15.38M on January 25, 2025, driven by a memecoin boom on Solana. By March 2025, daily revenue plummeted to $791,500, a 94% drop, as the memecoin market cooled. The token graduation rate fell to 0.98% from 1.62%, reflecting fewer successful token launches reaching decentralized exchanges like Raydium. Reduced user engagement, with daily active addresses dropping from 292K to 7,233 wallets creating tokens, further eroded revenue.

Emerging platforms like Four.meme on BNB Chain and LetsBonk on Solana have siphoned market share. Pump.fun’s dominance in Solana’s memecoin launchpad space has weakened, with PumpSwap holding only 19.2% of Solana DEX market share compared to Raydium’s 60.7%. This fragmentation has diluted trading volume and fees.

In late 2024, the UK Financial Authority banned Pump.fun for UK users, citing regulatory concerns. A class-action lawsuit filed in the Southern District of New York alleges Pump.fun operated a $5.5B “racketeering scheme,” accusing it of deceptive practices akin to a “slot machine” where early investors dump tokens on later ones. These legal challenges, naming Solana Labs and Jito Labs as co-defendants, have damaged investor confidence and platform activity.

In November 2024, Pump.fun suspended its livestream feature due to extreme content, including dangerous stunts, which sparked community backlash and reduced user engagement. Although the feature was reintroduced with stricter moderation, the initial suspension alienated some users. The platform’s no-code model has led to nearly 12 million tokens launched since January 2024, many lacking utility, contributing to market saturation.

Pump.fun initially teased a $PUMP token airdrop in October 2024, fueling speculation of a lucrative distribution for active users. However, on July 23, 2025, Alon Cohen announced in a Twitch interview and a Threadguy podcast that no airdrop would occur “in the immediate future,” prioritizing platform sustainability over short-term hype. This reversal led to a 17-20% price drop in $PUMP, from $0.00369 to as low as $0.0028, as investors sold off tokens bought at the $0.004 ICO price. Community frustration was evident on X.

Rumors of a $1B token sale at a $4B fully diluted valuation in June 2025 sparked controversy, with critics questioning the need for additional capital given Pump.fun’s $774M in revenue. Traders and community members, including voices on Reddit, labeled the raise as opportunistic, fearing it would siphon liquidity from other Solana assets. The token’s post-ICO performance, dropping 45% from a high of $0.006878, intensified skepticism about its value proposition.

The expanded lawsuit filed on July 23, 2025, accused Pump.fun, Solana Labs, Jito Labs, and their leadership of RICO violations, alleging they designed a fee structure to extract $5.5B from users through manipulative token launches. The complaint highlighted inadequate user verification and exposure to financial crime risks, further eroding trust. This legal pressure coincided with the airdrop delay, amplifying negative market sentiment.

Alon Cohen’s cryptic X posts, including a pyramid of Pump.fun “pills” and vague comments like “Think harder,” fueled conspiracy theories and confusion about the airdrop timeline. While some traders remained optimistic, hoping for a future rebound, others felt misled by earlier promises of a lucrative airdrop, with one X user calling $PUMP’s chart “one of the worst” post-launch.

Alon Cohen has consistently emphasized long-term utility over short-term speculative gains. In his July 23, 2025, Twitch interview, he clarified that Pump.fun is prioritizing governance features and DeFi integrations within Solana’s ecosystem, aiming to build a sustainable platform rather than relying on airdrop-driven hype. This stance, while praised by some for transparency, frustrated traders expecting quick rewards, contributing to the token’s price decline. Cohen’s direct denial of an imminent airdrop was intended to curb speculation, but his ambiguous X posts earlier in July.

The $PUMP token launch and airdrop controversy have affected Solana’s market perception. SOL’s price dipped 2-3% following the token sale rumors in June 2025 and faced further pressure after the airdrop delay, trading at $156-$160 by mid-2025. Critics argue that Pump.fun’s speculative model has painted Solana as a “crypto casino,” overshadowing its DeFi and infrastructure advancements. The lawsuit targeting Solana Labs and the Solana Foundation for facilitating Pump.fun’s operations has raised concerns about regulatory scrutiny.

The allegations suggest Solana’s leadership, including Anatoly Yakovenko and Raj Gokal, knowingly supported a platform that enabled manipulative practices, potentially damaging Solana’s reputation as a hub for legitimate DeFi projects. Solana’s ecosystem faces increased competition from platforms like Raydium’s LaunchLab and Meteora, which offer alternative token launch strategies.

The revenue drop at Pump.fun stems from a cooling memecoin market, intensified competition, regulatory bans, legal challenges, and community backlash over controversial features like the livestream suspension. The $PUMP airdrop controversy, exacerbated by Alon Cohen’s delayed timeline and cryptic communication, has fueled distrust and price volatility, with the token falling below its $0.004 ICO price to as low as $0.0028.