99% Failure: Pump.fun Memecoins Collapse Amid Market Crisis

Token Success Rate Plunges Below 1%, Pump.fun Struggles to Recover

Pump.fun, once a vibrant launchpad responsible for 70% of all memecoins on the Solana network, is witnessing an unprecedented collapse as the graduation rate of its tokens—the crucial metric measuring successful transitions into fully tradable assets—has remained stubbornly below 1% for four straight weeks. 

According to data sourced from Dune Analytics, since February 17, 2025, Pump.fun’s token graduation rate hasn't surpassed the 1% threshold, marking a stark contrast to its peak of 1.67% achieved in November 2024. Back then, approximately 323,000 tokens were created weekly, with roughly 5,400 successfully entering Solana's decentralized exchange (DEX) markets. Currently, the four-week average has drastically declined to around 1,500 tokens per week, reflecting a substantial loss of investor confidence and participation.

Investor fatigue and increasing skepticism have severely damaged memecoins' appeal, turning what was once viewed as potentially lucrative, speculative investments into nothing more than gambling-style ventures. Even high-profile launches such as the Donald Trump-inspired memecoin have crumbled dramatically, with Coin360 reporting an 84% drop from its all-time high set on January 19, 2025. 

This ongoing failure of memecoins persists despite broader improvements in market liquidity conditions. Notably, political intrigue and celebrity endorsements have proven insufficient to counteract negative investor sentiment, casting a long shadow over the asset class as a whole. 

The disconnect between improving market liquidity—driven by easing monetary conditions noted by Matrixport analysts, who cited better liquidity conditions amid increased overall market support—and the continued collapse of memecoins highlights the fundamental loss of investor trust in these tokens.

The severe downturn in memecoins is not isolated; its ripple effects have significantly deepened the broader crypto market's woes, culminating in a staggering $1 trillion loss in market capitalization. Analysts now warn this massive wipeout could induce further instability, potentially driving Bitcoin toward critical support levels. Some forecasts, citing liquidity and investor sentiment, suggest BTC could dip even lower if memecoin failures persist unchecked, intensifying investor anxiety and heightening market volatility.

Facing this growing turmoil, Pump.fun recently pivoted its platform strategy, rolling out direct messaging and group messaging functionalities for its mobile apps on March 13, 2025, in an attempt to reconnect and engage users. This update follows a disastrous end to Pump.fun’s livestreaming feature, which launched mid-2024 but was abruptly terminated due to highly controversial content. 

Users abused the service by broadcasting shocking material, including racism, explicit pornography, animal cruelty, and distressing threats of self-harm. Public outrage prompted Pump.fun’s co-founder, Alon Cohen, to terminate livestreaming indefinitely, a move resulting in an immediate 50% drop in platform engagement by late 2024.

Community response to Pump.fun’s messaging features remains divided. Some users view the update optimistically, believing it could reestablish a healthy user environment and reinvigorate token launches. However, others fear it could recreate the toxic, abusive environment that plagued the livestreaming feature, potentially perpetuating harassment and further damaging the platform’s reputation.

Beyond user dissatisfaction, Pump.fun faces significant regulatory and financial pressures. The UK’s Financial Conduct Authority (FCA) labeled Pump.fun as an unauthorized entity in December 2024, prompting a ban on its services for UK residents, including the newly introduced messaging feature. Concurrently, the platform faces multiple lawsuits in the U.S. and increased scrutiny globally. Adding insult to injury, the official Pump.fun account on X (formerly Twitter) was recently compromised by hackers, further eroding user confidence and trust.

With mounting challenges on multiple fronts, Pump.fun stands at a critical crossroads. Its ability to navigate these troubles, rebuild trust, and stabilize its platform will define whether it reclaims its past prominence or succumbs to an ongoing cycle of scandal and decline.

This article has been refined and enhanced by ChatGPT.