Pump.fun’s Ups and Downs
In the fast-changing world of cryptocurrency and decentralized finance (DeFi), some platforms are having a tough time. One of them is Pump.fun. Recently, it faced a big drop in trading, with a 63% decrease in February. This isn’t just happening to Pump.fun, though. Many other crypto platforms are also seeing less activity and less confidence from investors.
The Slowdown in Activity
Pump.fun, a popular place to create new tokens on Solana, has seen a big drop in the number of new tokens being launched. In just two weeks in February, the number of new tokens launched fell by 51.1%, from 54,368 to 26,584[2]. This shows that the crypto market is in a ‘bearish’ phase, where people are less excited and active.
Fewer Tokens Moving On
Not many of the tokens launched on Pump.fun are moving on to Raydium, a decentralized exchange. This is the lowest migration rate since May 2024[2]. This means that people aren’t confident that Pump.fun can support tokens after they’re first launched.
Money Matters
Just recently, Pump.fun’s revenue dropped by a huge 93% from the month before, as of February 28, 2025[5]. This big drop in money coming in was also followed by a big drop in the price of Pump.fun’s token, PUMP, from $0.15 to $0.08 in just one day[5]. The number of PUMP tokens being traded also dropped, from an average of 10 million tokens a day to just 1.5 million on the day the news came out[5].
Looking at the Charts
When we look at the price chart for PUMP, we see that the price broke through its support level at $0.12 and is now testing the next support level at $0.07[5]. A technical indicator called Moving Average Convergence Divergence (MACD) also shows a ‘bearish crossover’, which means the price is likely to keep going down[5]. On top of 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 money coming in at Pump.fun has some big effects on traders and investors. The big drop in trading volume and the price of PUMP might mean that people are selling more, which could be a good time for people who like to buy when prices are low[5]. However, the negative feelings in the market and the increase in negative talk on social media make it hard for the platform[5].
Looking Ahead
In short, Pump.fun’s recent problems, like the big drop in trading and money coming in, show that the crypto market is having a tough time. As Pump.fun tries out new things to get back on track, it has a big job ahead to make people confident in the platform again. The future of Pump.fun and other platforms like it will depend on how well they can adapt to changes in the market and come up with new ideas in the very competitive world of DeFi.
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Sources:
– KuCoin News
– Blockchain News