Pump.fun, a popular platform for launching meme coins, is experiencing a sustained downturn in trading activity and token price. Data from CryptoRank and Dune Analytics reveals that weekly trading volume on the platform has fallen for the fourth consecutive month, extending a decline that began after a peak in February. Last week's volume closed at $568 million, a stark drop from the $3.3 billion weekly peak seen earlier in the year.
The decline in platform activity coincides with significant selling pressure on its native token, PUMP. On-chain data from Arkham shows a major whale entity sold $6.3 million worth of PUMP tokens, realizing losses exceeding $5 million after accumulating the token over three months starting near its all-time high. This capitulation contributed to PUMP's price dropping over 30% monthly to trade around $0.002754 at press time.
In an attempt to counter the sell-side pressure, the Pump.fun team has been conducting daily token buybacks. Throughout December, the team has bought back approximately $12.7 million worth of PUMP, including $1.2 million in the last 24 hours alone. However, this internal buying has so far been insufficient to reverse the broader bearish trend, with the token struggling to reclaim key technical levels like the EMA20 near $0.0029.
The broader market interpretation suggests traders are becoming more selective, rotating capital away from speculative micro-cap meme coin launches on platforms like Pump.fun and into more established assets. Analysts indicate that a reversal for the platform would likely require a strong new catalyst, such as a breakout narrative or a major market rally.
