Pump.fun’s Trouble: A Closer Look
In the fast-paced world of cryptocurrency and decentralized finance (DeFi), platforms like Pump.fun are facing big challenges. Recently, Pump.fun had a big drop in trading, with a 63% decrease in February. This is part of a larger trend in the crypto market, where people are less active and confident.
The Slowdown in Activity
Pump.fun, a popular platform on Solana for creating new tokens, has seen a big drop in the number of new tokens launched each day. In just two weeks in February, the number of new launches fell by 51.1%, from 54,368 to 26,584[2]. This shows that fewer people are interested in using the platform and launching new tokens.
Fewer Tokens Migrate to Raydium
Only a small number of tokens launched on Pump.fun successfully moved to Raydium, a decentralized exchange. This is the lowest migration rate since May 2024[2]. This means that many tokens launched on Pump.fun don’t have a place to trade after they’re created, which could be because people don’t trust the platform.
Money Problems and Market Performance
Just recently, Pump.fun’s income dropped by a huge 93% from the month before, as reported on February 28, 2025[5]. This big drop in income was followed by a sharp decrease in the price of Pump.fun’s token, PUMP, which fell from $0.15 to $0.08 in just one day[5]. The number of PUMP tokens traded also went down, from an average of 10 million tokens a day to just 1.5 million on the day of the announcement[5].
What the Numbers Say
Looking at the charts, we can see that PUMP’s price broke through its support level at $0.12 and is now testing the next support at $0.07[5]. The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, which means the price is likely to keep going down[5]. On-chain metrics show that more tokens are being sent to exchanges, which means there’s more selling pressure[5].
What This Means for Traders and Investors
The drop in activity and income on Pump.fun has some big effects on traders and investors. The big drop in trading volume and the price of PUMP could mean that people are selling, and the Relative Strength Index (RSI) is in oversold territory, which could be a good time for people who like to buy when prices are low[5]. However, the negative feelings about the platform on social media show that it’s hard for Pump.fun to get people excited again[5].
Navigating the Challenges
In the end, Pump.fun’s problems show that the crypto market is changing, and platforms like Pump.fun have to adapt. To do better, Pump.fun needs to find new ways to attract people and make them confident in the platform again. The future of Pump.fun and other platforms like it depends on how well they can change with the market and come up with new ideas in the competitive world of DeFi.
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Sources:
– KuCoin News
– Blockchain News