Memecoin Boom on Pump.fun Slows as Graduation Rate Stays Below 1%

The memecoin boom on Pump.fun is losing steam, with the platform’s graduation rate staying below 1% for a fourth straight week, according to Dune Analytics.

The term “graduation rate” refers to the percentage of tokens that make it through Pump.fun’s incubation phase and become fully tradable on Solana decentralized exchanges (DEXs). Tokens must meet liquidity and trading benchmarks to qualify.

The platform has never had a high success rate, but its best week in November 2024 saw 1.67% of memecoins graduating. At the time, 323,000 tokens were created in a single week, sending around 5,400 new tokens into Solana’s DeFi market. Now, with lower token creation volume, weekly graduations dropped to an average of just 1,500 over the past month.

The platform’s total volume declined from $119 billion to $44 billion, with just $2.1 billion in trades over the past four days.

New token launches on Pump.fun have also slowed. At its peak in January, nearly 1,200 tokens were launching daily, but that number has since fallen below 300 per day in early March.

Trading volume for its graduated tokens plunged 94% from January highs of $3 billion to about $170 million. The platform’s token graduation rate—which tracks new coins reaching a $100,000 market cap to move to Raydium—has also slowed, dropping from 1.85% to 0.83% weekly.

Despite the downturn, February’s trading volume remains the fourth-highest month for Pump.fun since its launch in January 2024. Co-founder Alon Cohen attributed the slowdown to broader market conditions, explaining that when the market dips, altcoins and memecoins follow suit. However, he noted that Pump.fun’s share of revenue in the on-chain ecosystem has remained stable. Over the last 30 days, the platform pulled in $74 million in revenue.

The downturn hints at trader fatigue within Solana’s memecoin ecosystem. Months of hype have been followed by growing distrust, fueled by rug pulls, influencer-driven schemes, and insider trading groups. Speculative surges like those seen with presidential, influencer, and AI-themed tokens often fizzle out as risks become clearer.

The controversy surrounding “Libragate” is a prime example. The token, backed by a group including Hayden Davis, jumped after receiving Argentine President Javier Milei’s endorsement. However, it turned into a $107 million rug pull, with 86% of investors losing at least $1,000.

Looking ahead, Pump.fun isn’t standing still. It recently launched a mobile app and teased a native automated market maker (AMM).

The slump highlights falling demand for memecoins, which are often seen as short-term speculation rather than long-term investments. Even political figures like Donald Trump launched their own tokens, but enthusiasm has cooled. His memecoin is down 84% from its January peak, according to CoinGecko.

Regulators are taking notice. In a statement, the SEC clarified that memecoins aren’t securities, but warned that fraud and market manipulation will still be pursued.