The “meme-token factory” Pump.fun has experienced a sharp reduction in the number of tokens reaching listing on the decentralized Solana exchange Raydium. This comes amid waning interest in meme coins and a deep market correction.
Pump.fun enables the creation of tokens using a bonding curve model, where their value increases with the number of buyers. If a coin’s market capitalization reaches $100,000, the project is added to Raydium. At this point, Pump.fun injects liquidity of approximately $17,000 and burns LP assets to eliminate the possibility of a rug pull.
In January, the meme-coin sector was buoyant due to the launch of tokens associated with Donald and Melania Trump (TRUMP and MELANIA). Expectations were further heightened following the release of LIBRA, indirectly linked to Argentina’s President Javier Milei.
On January 23, Pump.fun issued a record number of tokens—71,735, according to Dune Analytics. Assets dependent on the platform showed a daily trading volume of $3 billion.
Last month, 24,008 tokens were sent to Raydium, but this month the figure has dropped to 11,532, reported X user nooman.eth.
pumpfun is trending to zero at a crazy speed
the graduating token numbers are imploding
last month: 24,008
this month: 11,332
last wee: 2,184
this week: 517
yesterday: 186the number of tokens been launched daily are also falling off a cliff
similarly the overall pumpfun… pic.twitter.com/NMXB9YB8tR
— nooman.eth (@n01man) February 26, 2025
The decline in interest in Pump.fun is linked to a global correction in the meme-coin segment. Over the past 30 days, the GMCI Meme index, reflecting the capitalization of major “funny coins,” has fallen by 30%, and since the beginning of the year—by 45%.
In January, two law firms demanded that the platform remove meme coins that infringe on their clients’ intellectual property, including company names and logos.
FOR IMMEDIATE RELEASE
Burwick Law and Wolf Popper LLP Demand Baton Corp. DBA, PumpFun Immediately Remove Tokens Deployed On The Solana Blockchain By Pumpfun That Utilize Unlicensed Intellectual Property In An Effort to Impersonate Our Law Firms, And Remove The Likeness Of Any…
— Burwick Law (@BurwickLaw) February 5, 2025
In the same month, Pump.fun faced a class-action lawsuit over the offering and sale of unregistered securities with “high volatility” to investors, garnering nearly $500 million in fees.
On February 26, a hack occurred promoting fake governance tokens and meme coins HACKED and hackeddotfun; the project team regained account access the same day.
Earlier, Bernstein analysts stated that as the regulatory environment changes, liquidity in the crypto market will begin to shift from “funny coins” back to DeFi projects, NFTs, and gaming tokens.