Trading volume on Pump.fun, Solana’s leading token launchpad, took a massive 63% hit in February, plummeting from $119 billion in January to just $44 billion—the lowest since October 2024. This dramatic drop follows a series of high-profile memecoin scams that have shaken investor confidence, with the LIBRA memecoin scandal standing out as a major turning point.
The impact is evident across the board. New token launches on Pump.fun have fallen sharply, from 58,000 per day at the start of February to just 24,000 by March 4. Meanwhile, the platform’s token graduation rate has nearly halved, dropping from 1.85% to 0.83% per week—meaning fewer tokens are achieving the $100,000 market cap needed for listing on Raydium.
The LIBRA Scandal: A Tipping Point for Memecoins
Among the various rug pulls, the LIBRA memecoin scandal sent shockwaves through the space. In mid-February, Argentine President Javier Milei publicly endorsed LIBRA, triggering a price surge. However, the excitement quickly turned into devastation as the token suddenly crashed, wiping out over $120 million in value and leading to accusations of a classic rug pull. This event severely damaged trust in memecoins, accelerating the market downturn.
Despite Setbacks, Pump.fun Pushes Forward
Even with declining volume, Pump.fun still managed to generate $74 million in revenue over the past 30 days, contributing to its total fees reaching a staggering $580 million. The platform has launched over 8.2 million tokens to date and is actively working to restore investor confidence.
To attract developers and traders, Pump.fun has introduced a mobile app and teased the launch of a native automated market maker (AMM). This decentralized trading system, which utilizes liquidity pools instead of traditional order books, could enhance native token trading and improve liquidity.
Solana’s DEX Ecosystem Remains Strong
Despite the turmoil surrounding memecoins, Solana’s decentralized exchanges continue to thrive. According to DeFiLlama, Solana led DEX trading for the fifth consecutive month, surpassing Ethereum by 24% to hit $109 billion in volume. Platforms like Raydium, Meteora, and Orca are maintaining strong liquidity, keeping Solana’s DeFi ecosystem resilient even in the face of memecoin turbulence.
As Pump.fun navigates these challenges, its ability to innovate and rebuild trust will determine whether it can regain its position as a dominant force in the Solana ecosystem.
