Pump.fun Faces Revenue Slump and Intensifying Competition Amid Legal Troubles

Pump.fun Sees Revenue Plunge to Ten-Month Low

The once-dominant memecoin launchpad, Pump.fun, is grappling with a sharp fall in daily revenue and waning momentum in the cryptocurrency market. According to DefiLlama, Pump.fun's revenue dipped below $300,000 on July 28, marking its weakest performance since September 2024. Although there’s been a modest recovery, the trend clearly points downward—a stark contrast to January, when Pump.fun generated over $7 million in daily revenue and held a commanding position among crypto token launchpad platforms.

Why Is Pump.fun Losing Traction?

Mounting Legal Pressures

Pump.fun’s recent difficulties can be traced to several critical challenges. Most notably, the platform is under legal fire. Earlier this month, a New York law firm filed an updated class-action lawsuit representing users who claim to have lost funds due to alleged fraudulent activities on Pump.fun. The initial suit, submitted in January, accused the platform of orchestrating manipulative token launches and enabling insider trading for personal profit. As the legal proceedings unfold, fresh claims of wire fraud and racketeering are intensifying the scrutiny around the platform.

Shifting Trader Sentiment

In addition to mounting legal issues, Pump.fun is witnessing a migration of memecoin traders to alternative platforms. Newcomers like LetsBonk—a Solana-based launchpad introduced in April—have rapidly gained traction by offering user-friendly token creation tools. Dune Analytics reports show Pump.fun's dominance on Solana-deployed tokens has plunged nearly 70% over the past month. For example, in the last 24 hours, LetsBonk facilitated the launch of nearly 20,000 new tokens, dwarfing Pump.fun’s output of just over 4,600 tokens.

PUMP Token Performance Disappoints

The decline is further compounded by the underperformance of Pump.fun’s native PUMP token. After a brief price surge post-launch, the token has dropped approximately 30% in the past week and nearly 60% over the month. This price collapse has only eroded trader confidence further.

Falling Active User Numbers and Rising Losses

Pump.fun’s active address count now hovers around 65,000—a substantial decrease from its January peak of 425,000. This downturn also reflects in overall user profitability. According to a crypto.news report from June, over 60% of Pump.fun traders faced significant financial losses. In just six months, about 2.4 million wallets suffered losses of at least $1,000. Even more striking, 30,000 wallets lost between $10,000 and $100,000, while 46 wallets saw on-chain losses exceeding $1 million.

Looking Ahead: Can Pump.fun Recover?

Despite retaining a strong presence in the memecoin ecosystem, Pump.fun is navigating a challenging landscape filled with legal hurdles, new competition, and a waning user base. Whether the platform can overcome its current struggles and reclaim its former dominance remains uncertain, but the coming months will be critical for its future in the rapidly evolving crypto launchpad sector.