Pump.fun Sees Its Lowest Trading Volume Since October 2024
The trading volume on Pump.fun reached its lowest point since October 2024 after experiencing a sudden decrease. This unexpected decline in platform growth represents a worrisome development because memecoins may soon become obsolete in the cryptocurrency world.
What is Pump.fun?
Pump.fun is a decentralized memecoin design and exchange platform that launched its operations on the Solana blockchain during January 2024 before transforming into a popular platform.
Users could mint coins on the platform without coding knowledge through the interface created by pseudonymous chief Alon. The platform generated fees exceeding $100 million from its launch through its first half-year operation with more than 50,000 active users.
Detailed Analysis of the Recent Trading Volume Decline
Trade volume statistics show Pump.fun has seen significant operational decline in its business. Total trade volume at Pump.fun dropped by 63% during January and February 2025 because its value decreased from $119 billion to $44 billion. The trading volume dropped between February and March until it reached its summer 2025 peak.
The all-time trading high on Pump.fun occurred at $50 million in October 2024 but March 3, 2025 produced a new peak of $12.5 million. The market-wide trend revealed itself through this drop because major decentralized exchanges showed a 25% decrease in trade volume during the previous month.
The native token PUMP has experienced a price decrease on the market. During March 3rd 2025 PUMP experienced a 15% price reduction which settled at $0.08 while reaching its daily maximum value of $0.095.
Current market patterns show bearish MACD crossover combined with RSI value at 35 as technical indicators that support this price decline.
What Possible Effects Could There Be?
The diminished trading activity on Pump.fun causes negative effects on both memecoin markets and Solana platform operations. Rising bid-ask spreads make market prices more reactive to trading activities, thus hindering traders' ability to complete big orders.
The trading volume of Pump.fun achieved its lowest point since October 2024. The general deterioration in memecoin performance is reflected by this reduced trading volume. The following reasons explain this situation:
- The trading volume decreased by 63% between January and February 2025.
- New token releases have become extremely rare.
- The website continues to generate $74 million in revenue during a thirty-day period.