Pump.fun Memecoin Activity Plummets as Traders Pivot to Bitcoin Amid Market Volatility
Pump.fun, a leading Solana-based memecoin platform, has seen a steep downturn in activity. Daily memecoin deployments dropped by 56.3%, from 72,000 to 31,000, as protocol fee revenue plunged 94% from a January peak of $15.38 million to $791,500 in March. The percentage of memecoins ’graduating’ to broader markets also halved from 1.4% to 0.7%, signaling reduced investor confidence in new Solana memecoins. This decline paralleled a broader 22% crypto market correction since January 2024, with total market capitalization falling to $2.85 trillion and Bitcoin’s dominance rising to 59.1%. Market sentiment has been hurt by high-profile memecoin collapses, such as LIBRA, which plummeted from $4.6 billion to $220 million, and a sharp, 83% reversal in TRUMP’s price. Pump.fun has responded by launching a mobile app and planning new liquidity tools to attract users. Currently, liquidity and risk appetite continue to consolidate around Bitcoin, with memecoin market cap stagnating at $53.04 billion. Crypto traders should note the sector’s heightened volatility and increased capital rotation towards Bitcoin and away from speculative altcoins, making Bitcoin the relative safe haven in the near term.
Bullish
The sharp decline in memecoin activity and revenue on Pump.fun, along with repeated crashes of high-profile tokens like LIBRA and TRUMP, has significantly reduced risk appetite for speculative altcoins. As a result, market liquidity is flowing into Bitcoin, which is demonstrating increasing dominance and stability amid sector volatility. Traders are rotating out of memecoins and into Bitcoin as a perceived safe haven, supporting a bullish short- to medium-term view for BTC while signaling short-term weakness for Solana-based and other altcoin projects. Only select memecoins tied to notable events show brief surges, but overall, Bitcoin stands out as the beneficiary of this capital rotation.