Pump.fun Trading Volume Drops 94% in Q1 2025 Amid Market Slowdown

Pump.fun, the Solana-based memecoin launch platform, has seen a sharp decline in trading volume in early 2025. Daily volume for graduated Pump.fun tokens dropped from $3 billion in January to $170 million, marking a 94% decrease. This decline follows a slower token graduation rate, as fewer coins reach the $100,000 market cap required to list on Raydium.

Src:The Block

Memecoin Fatigue and Market Cooling

The drop in trading volume reflects both market-wide trends and changing trader sentiment. The Solana memecoin market saw intense speculative activity throughout 2024, but rug pulls, influencer promotions, and insider trading concerns have contributed to fading enthusiasm. Many traders appear to be moving away from memecoins, leading to lower volume and fewer successful token launches.

Market saturation may also be a factor. Pump.fun has facilitated over 4 million token launches since its debut in January 2024. As the ecosystem becomes oversaturated, interest in new coins has declined, making it harder for tokens to reach critical mass.

Regulatory and Market Pressures

Regulatory scrutiny has also impacted trading volumes. In December 2024, the UK’s Financial Conduct Authority (FCA) issued warnings about memecoins, potentially deterring some users. Additionally, broader crypto market trends, including Bitcoin price movements, have influenced investor behavior, diverting attention to other sectors like AI agent tokens.

Despite the downturn, Pump.fun has generated $570 million in lifetime revenue, demonstrating its past success. The platform continues to adapt, launching a mobile app and hinting at a native automated market maker (AMM) to sustain engagement.

What This Means for you [NFA]

For memecoin traders, the decline in Pump.fun’s volume suggests a shift in market conditions. Those still trading should consider the increased risks of low liquidity and market saturation. However, the platform’s continued development signals an attempt to evolve beyond its speculative roots.

While memecoin cycles are unpredictable, Pump.fun’s ability to navigate this slowdown will determine whether it remains a dominant force or fades with the speculative frenzy.