Pump.fun’s February Volume Plummets 63%

Pump.fun’s Problems: A Closer Look

In the world of cryptocurrency and decentralized finance (DeFi), things are always changing. Recently, a platform called Pump.fun has been having some big problems. In February, trading on Pump.fun dropped by 63%[1]. This isn’t just a Pump.fun problem, though. The whole crypto market is seeing less activity and people are less confident in it.

The Drop in Activity

Pump.fun is a popular place to create new tokens on the Solana network. But lately, fewer new tokens are being launched there. In February, the number of new tokens launched on Pump.fun dropped by 51.1% in just two weeks[2]! This is happening because people are less interested in crypto right now.

What About Token Migration?

Most tokens launched on Pump.fun don’t move to a decentralized exchange called Raydium. This is the lowest migration rate since May 2024[2]. This means that people don’t trust Pump.fun to help their tokens after they’re launched.

Money Problems

Pump.fun’s money problems are also getting worse. In late February, their revenue dropped by 93% from the month before[5]. The price of Pump.fun’s token, PUMP, also fell from $0.15 to $0.08 in just one day[5]. People are trading PUMP less, too. The trading volume dropped from 10 million tokens a day to just 1.5 million on the day the news came out[5].

What’s Happening with PUMP’s Price?

The price of PUMP is going down. It broke through a support level at $0.12 and is now testing the next support at $0.07[5]. A technical indicator called MACD shows that the price is going down, too[5]. More PUMP tokens are being sent to exchanges, which means people are selling them[5].

What Does This Mean for Traders and Investors?

If you trade or invest in PUMP, you should know that its price and trading volume have dropped a lot. This could mean that people are selling PUMP, but it might also mean that there are good deals to be found. However, the mood in the crypto world is bad right now, and people are talking negatively about Pump.fun on social media[5].

Can Pump.fun Bounce Back?

In the end, Pump.fun is having a tough time right now, just like the rest of the crypto market. But if Pump.fun can find new ways to make money and make people trust it again, it might be able to come back. The future of Pump.fun and other DeFi platforms depends on how well they can adapt to changes and come up with new ideas.

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Sources:
– KuCoin News
– Blockchain News