Pump.fun Revenue Drops 80% Amid Memecoin Market Cooling

Pump.fun's latest price was $0.003239, up 3.481% in the last 24 hours. Pump.fun, a leading memecoin platform on the Solana blockchain, has experienced a significant decline in revenue, dropping by 80% in July compared to its peak in January. This downturn reflects a broader cooling trend in the memecoin market, which saw a high of $85 billion in total market cap in July, followed by a 23.5% decline to $65 billion by early August. The memecoin market cap and trading volume have both decreased, indicating a reduction in speculative activity and fewer new projects being launched.

Pump.fun's revenue started the year strongly, earning over $130 million in January. However, it steadily declined to $90 million in February, $37 million in March, and hovered around $40 million for the following months before dropping below that level in July. This trend suggests that the excitement around launching new tokens on Pump.fun has waned as the hype around memecoins fades. The decline in Pump.fun's revenue is part of a broader trend affecting the memecoin market. In July, the memecoin market cap reached $85 billion with a record $17.22 billion in daily trading volume. However, by early August, the market cap had fallen to $65 billion, and trading volume dropped by 67% to $5.59 billion. Solana, which hosts many active memecoin platforms, has also seen fewer people trading and fewer tokens being launched.

On August 2, only 34,040 Solana Program Library (SPL) tokens were minted, the lowest daily count in the past three months. This indicates a clear drop in speculative activity, with new projects not popping up as frequently as they did a few months ago. The memecoin market appears to be entering a cooling phase after an unsustainable period of growth. Daily trading activity on Pump.fun has also declined. On July 9, the platform saw 346,000 traders and $348 million in trading volume, a daily record. However, by August 5, these numbers had dropped to 129,000 traders and $150 million in volume, representing a 62% drop in users and a 56% decline in volume. This trend is not unique to Pump.fun; LetsBonk, one of its biggest competitors, also showed signs of a slowdown, with a 10% decline in trading volume despite an increase in trader count.

Despite the challenges, Pump.fun has taken steps to restore confidence in the platform. It initiated a buyback program, repurchasing $31.3 million worth of PUMP tokens funded by 25% of the protocol revenue. Additionally, Pump.fun acquired Kolscan, a leading on-chain wallet tracking tool, to improve transparency and attract serious meme investors. However, the platform faces a significant legal challenge with a class-action lawsuit filed by Burwick Law, claiming that Pump.fun operates like an "illegal casino" that encourages speculative memecoin gambling. The lawsuit seeks $5.5 billion in damages, which could impact the platform's long-term regulatory standing and public perception.

Pump.fun's launch through an Initial Coin Offering (ICO) on July 12, 2025, sold 15% of its total 1 trillion token supply, amounting to 150 billion PUMP tokens. The token sale drew considerable attention and indicated the platform's ambition to be more than just a memecoin incubator. However, shortly after its debut, the PUMP token plummeted 67% from its peak, putting pressure on the platform to innovate and reinforce its value proposition to the market. Despite the setbacks, Pump.fun is fighting back. The asset saw an 11% growth in price on the back of bullish fundamentals and aggressive whale accumulation. According to on-chain activity, venture firm GSR purchased $4.6 million worth of PUMP from exchanges, indicating institutional interest. At the same time, open interest in PUMP derivatives rose 6%, hitting $743 million, while the funding rate flipped positive. However, competition is heating up in the meme launchpad space, with rivals like LetsBonk.fun gaining ground rapidly, forcing Pump.fun to double up on its buyback strategy, acquisitions, and product rollout.

Pump.fun's recent challenges highlight the volatility and risks associated with the memecoin market. As the market cools down, platforms like Pump.fun must innovate and adapt to maintain their relevance and attract serious investors. The legal challenges and competition faced by Pump.fun underscore the need for platforms to focus on transparency, regulatory compliance, and value proposition to sustain long-term growth. Pump.fun encountered a significant downturn in its revenue during July 2025. The platform recorded its lowest monthly revenue figure for the year, reaching just under $25 million. This represents a stark decline of approximately 80% compared to its peak performance earlier in the year when monthly revenue hit $130 million. Analysts observing the broader cryptocurrency market noted a cooling trend within the memecoin sector during this period, which correlated with Pump.fun's reduced activity and income generation, indicating wider market dynamics impacting the platform.

In response to the downturn and potentially related challenges, including legal matters referenced in broader industry discourse, Pump.fun introduced a significant transparency initiative. The platform launched a public-facing dashboard designed to provide stakeholders and observers with detailed, real-time insights into its operational performance. This dashboard prominently features up-to-date information on the platform's generated revenue and the ongoing execution of its strategic buyback program. This move is widely interpreted as an effort to rebuild trust and demonstrate operational accountability following the period of declining income. Separately, Pump.fun experienced heightened interest and market activity surrounding its native token, PUMP. This surge followed a public communication from Alon Cohen, one of the platform's co-founders. Although Cohen's message, hinting at potential new features involving native community coins, remained deliberately vague regarding specifics, it nonetheless generated substantial speculative interest. The announcement triggered a sharp 15% increase in the token's market value over a short period, suggesting continued strong community engagement and responsiveness to signals from the platform's leadership despite the overall revenue challenges faced in July.