Pump.fun Faces Major Decline in Fee Revenue Amidst Controversies

Pump.fun, once a leading platform in the meme coin space, has witnessed a staggering 92% drop in its protocol fee revenue, according to data from DefiLama. The platform’s fee revenue, which peaked at $15.38 million on January 25, has since fallen to just $1.1 million. This sharp decline is attributed to a slowdown in activity across Pump.fun and the wider Solana network, primarily due to recent controversies, including the highly publicized LIBRA fiasco involving Argentine President Javier Milei.

In addition to the revenue decline, token launches on Pump.fun have also seen a dramatic decrease. The number of new tokens launched has dropped from over 70,000 on January 23 to about 25,000 by February 26, as per data from Dune. This drop is part of a broader trend seen in the meme coin sector, which has experienced a significant loss in market capitalization in 2025.

The meme coin sector had seen an explosive surge in 2024, with a 212% annual gain, largely driven by platforms like Pump.fun. Over 5.7 million new projects were launched in 2024, generating more than $400 million in revenue. However, this rapid growth has slowed significantly in 2025, with a noticeable shift in sentiment.

Initially, meme coins were seen as “fair launch” opportunities, offering retail investors the same chances for profits as venture capitalists. However, the launch of the Milei coin exposed a darker side of the meme coin market. The coin saw its valuation skyrocket from $1 billion to $4 billion, raising concerns about manipulation and fraud in the space.

Adding to the platform’s woes, Pump.fun itself fell victim to fraud on February 26, when its official Pump.fun X account was compromised. The account was used to promote a fake governance token PUMP, along with several other fraudulent coins, further damaging the platform’s credibility.

In light of these events, the future of Pump.fun remains uncertain, with many questioning whether the meme coin trend can continue its earlier momentum.