Solana Memecoins Plummet on PumpFun Token Launch Report

Solana-based memecoin launchpad pumpfun is reportedly seeking to raise $1 billion from an upcoming token drop, and leading Solana memecoins are in free fall after the announcement.

According to Blockworks, sources familiar with the matter said the token launchpad will seek a $4 billion valuation across two fundraises. One of the raises will be private, and the other may be public, potentially via an initial coin offering (ICO).

Since the news broke, leading Solana and pumpfun-based tokens plunged. FARTCOIN is down 13% to $0.98 from $1.16, and the entire pumpfun ecosystem on CoinGecko is down 3.3% to a $3.7 billion market capitalization, the worst-performing category on the platform today.

pumpfun is yet to make any public announcement about a token, and did not immediately respond to The Defiant’s request for comment.

pumpfun, which recently launched its own automated market maker, PumpSwap, and revenue-sharing features, is the hub of the memecoin craze, which was the dominant narrative of 2024.

At its peak after the launch of the TRUMP memecoin, there were nearly 300,000 daily active wallets on pumpfun, with more than 50,000 memecoins launched every day. Despite the sharp pullback across the memecoin sector, activity numbers remain more than double what they were for most of 2024.

The sheer volume and activity on pumpfun over the last year made the platform the third most profitable business in all of DeFi, generating $645 million over the last year. pumpfun’s yearly revenue only trails stablecoin issuers Tether and Circle, which generated $6 billion and $1.7 billion, respectively.

While the memecoin space has cooled off since its January peak, pumpfun is still the fourth most profitable business in DeFi, after being overtaken by Hyperliquid.

Hyperliquid has generated $65 million in revenue over the last 30 days, compared to pumpfun’s $43 million. Hyperliquid’s HYPE token currently trades at a $36 billion valuation.

UPDATE: Article corrected to reflect pumpfun has $43 million of 30-day revenue.