TL;DR
- Pump.fun has made significant deposits to Kraken, totaling over 1.5 million SOL, surpassing $300 million, with continued movement and interest from investors in Solana-based tokens.
- The platform’s transaction volume, user activity, and revenue have seen a sharp decline since November 2024, impacting its performance and raising concerns about sustainability.
- Pump.fun has faced mounting criticism and concerns over harmful content in its live streaming feature, as well as potential scams related to its memecoins and the overall security of its ecosystem.
The cryptocurrency market continues to surprise with unexpected movements, and one of the most recent is that of Pump.fun, the Solana-based memecoin launchpad. According to on-chain data, on January 1, 2025, Pump.fun made a significant deposit of 120,000 SOL, worth approximately $14.7 million, to the cryptocurrency exchange Kraken. This move brings the platform’s total deposits to Kraken to over 1.5 million SOL, which is worth over $300 million.
Decline in Pump.fun’s Performance
Pump.fun, known for its business model focused on creating and distributing meme-inspired tokens, has made a prominent mark in the Solana ecosystem. However, recent data shows a slowdown in its performance. Since its historical peak in November 2024, when it reached a transaction volume of $2.58 billion, numbers have been on the decline. This is accompanied by a drop in the platform’s daily revenue, which fell from $5.31 million on November 24, 2024, to $2.12 million at the start of January 2025.
This decline is also reflected in the Solana network itself, whose economy dropped from $27.6 million at the end of November to just $4.65 million by the end of December 2024.
These decreases in activity metrics and economic value coincide with a reduction in transaction rates and weekly fees on the network.
The increased media visibility of Pump.fun was partly due to a live streaming feature that generated controversy due to its content, leading the platform to suspend this feature shortly after. Additionally, concerns about potential scams linked to the memecoins created by Pump.fun were addressed by Chainalysis, a leading blockchain analytics provider, which expanded its coverage to include these tokens and ensure better tracking and security.
