Is This the End of Pumpfun?

With Solana’s fast descent to under $200, Pumpfun, one of the most profitable decentralized applications on the Solana blockchain, has lost most of its users.

Graduated tokens (tokens that have left the app and gone to Raydium) have fallen to just 47 as daily volume plummets, dragging Solana’s fees and revenue below its competitor, Hyperliquid.

With Solana price action on the low and an upcoming $2 billion token unlock due in March, could this be the end of Pumpfun?

Monitoring Pumpfun’s decline

Looking at on-chain activity, Pumpfun’s sharp decline may have begun at the beginning of February as new addresses plummeted to 64k before declining further on February 26 to 50,081. 

From February 26 to 27, daily volume including trading fell from $86 million to just $29 million. On the other hand, total fees for Pumpfun have dramatically taken a turn for the worse.

Total fees for the dApp went from $15.5 million on January 24, 2025, to just $401k on February 27. Total addresses creating a token on Pumpfun fell from highs of 48,055 on January 24, 2025, to 4,446 on February 27. 

Tokens graduating from Pumpfun to RAY liquidity pools have reached their lowest since the platform first began, with only 47 tokens making it to Raydium.

Pumpfun sued by Burwick Law

Aside from rapidly decreasing users, fees, and token launches, the Pumpfun platform has been the subject of multiple lawsuits, with its most recent class-action lawsuit coming from the U.S. District Court for the Southern District of New York.

The lawsuit filed by Wolf Popper LLP and crypto lawyer firm Burwick Law has accused Pumpfun of violating US securities laws, saying the platform has been selling unregistered securities as meme coins, generating $500 million in revenue. 

The lawsuit’s plaintiff, Diego Aguilar, claims Pumpfun promoted highly volatile crypto meme coins with urgency using guerilla marketing tactics, leading retail investors to incur major losses. 

From the lawsuit:

Pump.Fun’s core function is to work alongside influencers to co-issue and market unregistered securities. Inherent to its operations are a novel evolution in Ponzi and pump-and-dump schemes

Named in the case are key members of Pumpfun’s team, Dylan Kerler, lon Cohen and Noah Bernhard Hugo, listed under the UK-based company Baton Corporation. 

Is this the end of Pumpfun on Solana?

Could this be the end of Pumpfun? Possibly. Solana’s network is heavily supported in fees and revenue by the blockchain’s meme coin economy.

When President Trump launched his $TRUMP meme coin, Solana made a new all-time high of $293 on January 19, 2025. 

With few DeFi use cases on Solana outside of generating meme coins and tokens, network usage may fall dramatically as evidenced by Pumpfun’s decline, bringing the Solana network’s total fees along with it.

Solana is down -41.3% over the last 30 days as users transfer funds en masse to other networks such as Ethereum, Arbitrum, and Binance’s BNB Chain according to on-chain stats from DeBridge. 

If Solana fails to find footing over the next few months, there is a strong case to believe that its meme coin market may slowly dwindle along with the Pumpfun platform itself until new outsider interest is generated. 

Meme coins such as LIBRA from Argentina, TRUMP, MELANIA, and AI agent tokens such as  Zerebro, have extracted liquidity and funds from cryptocurrency traders, incurring major losses. 

For many, the decline of Pumpfun is welcomed with open arms as statistically, only wallets realizing a profit over $10,000 were in the top 0.412%. The majority of users on Pumpfun will make no profits at all.