Pump.fun trading volume falls to $44B in February

Trading volume on Pump.fun, a token launchpad in the Solana (CRYPTO:SOL) ecosystem, dropped by 63% in February compared to January, according to data from Dune Analytics.

The platform recorded $44 billion in trading volume last month, down from $119 billion in January.

Despite the decline, February’s figures still rank as the fourth-highest since Pump.fun launched in January 2024.

However, the drop comes amid growing concerns over memecoins following multiple high-profile incidents and increased scrutiny.

The number of new token listings on Pump.fun has also declined.

Pump.fun co-founder Alon Cohen attributed the slowdown to broader market conditions.

“When the market trades down, altcoins as well as memecoins trade down, and activity across crypto — including on Pump.fun — slows down,” Cohen said.

He added that the platform’s share of revenue within the on-chain ecosystem has remained steady.

Over the past 30 days, Pump.fun generated approximately $74 million in revenue, according to Dune Analytics.

Memecoin trading, which had gained traction during the crypto market’s recent uptrend, has faced setbacks due to concerns over insider trading, rug pulls, and fraudulent activities.

One notable case was the "Libragate" incident, where a token linked to Hayden Davis surged in value after an endorsement from Argentine President Javier Milei.

The token later collapsed in what has been described as a $107 million rug pull, with 86% of investors reportedly losing over $1,000 each.

Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, noted that memecoins have shifted away from their initial community-driven purpose.

“Memecoins have evolved from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors,” she said.

The U.S. Securities and Exchange Commission (SEC) has also taken notice of memecoins.

In a statement on February 27, the SEC clarified that memecoins are not considered securities but emphasised that fraudulent activities in the space will continue to be monitored.