Pump.fun Faces Decline Amid Lawsuits and Hacking Scandals

Pump.fun, a key player in Solana’s meme coin market surge last year, has seen a sharp decline in both protocol fees and trading volume.

Once at the center of the meme coin boom, the platform’s current data reflects a stark contrast to its earlier success.

As of March 28, Pump.fun’s protocol fee revenue dropped to $1.2 million, a significant fall from the $7.07 million seen in January, marking an 83% decrease over the past three months.

Though this is an improvement from the near $671k recorded just last week, it still reflects a considerable decrease in user engagement. The platform, once integral to the Solana meme coin ecosystem, is now struggling with reduced revenue and diminishing market influence.

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This decline coincides with a broader downturn in the meme coin market, which had previously surged in popularity in 2024. According to Binance, meme coins led the crypto sector with average gains exceeding 212%, and Solana became the go-to blockchain for trading these assets.

Pump.fun had been at the heart of this movement, facilitating the launch of millions of meme coin projects and generating substantial revenue. However, the market’s enthusiasm seems to have waned in 2025, with growing concerns over fraud and manipulation.

Additionally, Pump.fun’s difficulties have been compounded by a series of setbacks. In late February, the platform’s official account was hacked, and fraudulent tokens were promoted under its name, including a fake governance token.

The platform is also facing multiple lawsuits, including one accusing it of facilitating the launch of unregistered securities through its token creation process. These lawsuits allege that influencers misled investors, resulting in significant losses. The platform’s legal troubles further add to the mounting pressure on its operations.

Alexander Stefanov