Pump.fun’s daily revenue drops to slightly above $1 million, is this the end of the memecoin era?

Dune analytics platform revealed that Pump.fun’s daily revenue had plummeted to slightly above $1 million. Pump Fun’s daily revenue dropped to the levels of mid-to-early October last year.

The analytic platform recorded about 27,700 tokens created on Pump Fun in the past 24 hours. Of those tokens created, only about 0.88% were successfully launched.

Pump.fun’s daily revenue drops to around $1M 

At the time of publication, Pump.fun recorded a daily revenue of $1,189,073 and a cumulative daily revenue of slightly over $575 million. Dune indicated that the memecoin launchpad recorded 4,015 tokens created at the time of publication. Only 53.4% of the tokens created got launched on Pump Fun, around 2,100 tokens. 

Pump.fun revenue from January 2024 to date. Source: Dune Analytics

Pump.fun has also experienced a substantial decline in tokens graduating from the platform since last month. The launchpad had 11,332 tokens that graduated this month, which was almost half of the tokens that graduated last month, around 24,008. Last week saw around 2,184 tokens graduating, while this week only had 517 tokens graduating from Pump.fun. The platform revealed that only 244 tokens graduated to the decentralized exchange Raydium in the last 24 hours. 

The launchpad’s tokens pass through a bonding curve after creation, where their price increases as more tokens are purchased. A token “graduates” and gets listed on Raydium after its market cap reaches approximately $100,000.  The firm then deposits roughly $17K worth of liquidity into Raydium’s pool and burns the corresponding liquidity provider tokens to ensure the liquidity remains locked and reduces the risk of rug pulls.

Tokens on Pump.fun had been flourishing on the latest memecoin wave after the high-profile memecoin launches from President Trump and First Lady Melania Trump in January. Pump.fun launched a record 71,735 tokens on January 23, just a few days after Donald Trump revealed his own official memecoin and was inaugurated as President. At the same time, the firm saw record daily trading volumes for Pump.fun graduated tokens of over $3 billion.

“Pumpfun is imploding and it’s bringing crypto down with it. In the past two weeks, volume has decreased by over 50%. Yes, the platform is still generating over $1 million per day but the fall is rapid. It’s reminiscent of the NFT cycle 21-22.”

– Nick O’Neill , Co-Founder and CEO of The Nifty.

The GMCI Solana Meme index showed that memecoins were the hardest hit sectors in the recent crypto market sell-off as traders grew tired of the perpetual extraction through serial token pumps and dumps. The index, which represents the largest memecoins by market cap, plummeted more than 30% over the past month and 65.77% year-to-date as the hype came to an end.

Pump.fun faces troubles regarding its launched memecoins

Burwick Law and Wolf Popper LLP issued a cease and desist letter to Pump.fun earlier this month to remove tokens that impersonated the two companies. Burwick acknowledged that both law firms demanded the immediate removal of memecoins that infringed upon their intellectual property, including company names and logos.

The law firm argued that the Solana memecoin launchpad launched tokens “in conjunction with” third-party efforts to “intimidate” clients of both firms. The firm also lamented that Pump.fun launched tokens to undermine the two law firms’ legal action against the platform.

Burwick Law said in a statement that the launchpad had the technical capacity to remove the tokens but had chosen not to act, despite the clear financial and legal risks posed to the public.

The U.S.-based law firm also asked for the elimination of the Dogshit2 token, which was allegedly pushed by promoters in a “high-risk pump-and-dump” scheme. Burwick refrained from claims that it was behind the Dogshit2 token and said that “our firms have not launched any memecoins onchain.”

Both firms had also filed  a proposed class-action lawsuit against Pump.fun on January 30, representing memecoin investor Diego Aguilar. Aguilar claimed that the platform marketed tokens similar to Ponzi schemes as significantly profitable, deliberately targeting less-affluent and younger investors.

The Solana memecoin launchpad’s X account was also hacked on February 26 to promote fraudulent tokens, including a fake “PUMP” token. The hacker claimed the token was the “official governance” token of Pump.fun, alongside a Solana contract address. The token surged to a $5 million market cap before rapidly crashing despite warnings that the token was concentrated among a small group of wallets.

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