Pump.fun Revenue Declining – Is Liquidity Flowing to BNB Chain?

Current Situation: Pump.fun Revenue Drops Sharply

Data from DefiLlama shows that Pump.fun’s 24-hour fees have dropped to just $110,726, a significant decline from its peak of $15.5 million in January 2025. The decline occurs despite SOL’s price remaining high ($203.86 as of March 10, 2025), indicating that the memecoin market on Solana might be facing difficulties.

Reasons Behind Pump.fun’s Revenue Decline

• Legal Issues and Controversies: Pump.fun is facing lawsuits, bans from the UK Financial Authority, and controversies over livestream content, leading to a loss of user trust.
• Market Downturn: The recent dump of BTC and altcoins may have drained traders’ capital, leaving them with insufficient cash to trade memecoins, a high-risk sector.
• Is Solana Losing Its Degen Appeal? The price of Solana’s tokens has been declining, and the 24-hour trading volume on Solana-based DEXs has dropped to $1.94 billion, with Pump.fun’s specific volume down to just $95.8 million.

Future Outlook and Comparison with BNB Chain

BNB Chain is currently experiencing growth, with application revenue reaching $16.5 million in February 2025, while Solana’s revenue has declined by more than 50% (according to Cointelegraph’s X post). Four.meme on BNB Chain serves as a successful example, and while Pump.fun may consider expanding, there has been no official announcement.

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Detailed Research Report

Background and Current Data

Pump.fun, a memecoin launchpad on the Solana blockchain, gained significant attention in early 2024 due to its ease of token creation and low fees. However, according to DefiLlama data, its 24-hour fees have now dropped to just $110,726—down from an all-time high of $15.5 million on January 24, 2025 (as per CoinMarketCap). This decline comes at a time when SOL’s price remains strong ($203.86 as of March 10, 2025, per Binance), suggesting that the issue lies within memecoin activity rather than SOL’s valuation.

Analysis of Revenue Decline Causes

Several key factors contribute to this decline:

Legal and Regulatory Challenges

• Ongoing Lawsuits: Pump.fun is facing class-action lawsuits, including allegations of selling unregistered securities. The platform has reportedly generated nearly $500 million in fees, leading to legal scrutiny.
• Regulatory Bans: The UK Financial Authority banned Pump.fun in late 2024, significantly reducing its user base.

Controversies and Reputation Damage

• Livestream Issues: Pump.fun’s livestream feature has sparked controversy, featuring disturbing content such as self-harm threats and animal abuse. This led to a ban on livestreams and a 33% revenue drop, further shaking community trust.
• Exploitation Scandal: A hacker involved in a Pump.fun-related exploit was arrested in London, adding to the platform’s instability (The Block).

Market Saturation and Investor Fatigue

• The memecoin market on Solana may have become oversaturated, with over 6 million tokens launched. The phenomenon has resulted in an increase in scam tokens, intense competition, and reduced attractiveness.
• Investors may be running out of capital following previous trading cycles, especially in a speculative sector like memecoins.

Declining Hype on Solana

Solana’s ecosystem, once known for its “degen” culture, may be losing its appeal as investors shift to other chains like BNB Chain.

Comparison with BNB Chain and Four.meme

The Importance of Memecoins in a Bear Market

Memecoins like Dogecoin, Shiba Inu, and emerging tokens such as MOODENG are often seen as speculative assets. Unlike traditional cryptocurrencies, memecoins rely heavily on community engagement and social media virality rather than technological advancements. According to ChainCatcher, memecoins achieved an average return of +1300% in 2024, demonstrating their strong appeal amid market volatility.

During bearish market conditions, when Bitcoin and Ethereum decline in value, memecoins can emerge as an alternative investment option due to their viral nature and rapid profit potential. For instance, in 2021, despite signs of market downturns, memecoins experienced massive growth, fueled by online communities and influencers like Elon Musk.

Comparing BNB Chain and Solana Performance

BNB Chain is experiencing significant growth, particularly in the dApp and memecoin sectors. According to Cointelegraph, BNB Chain’s application revenue reached $16.5 million in February 2025, reflecting increased trading activity and liquidity.

On the other hand, Solana, once the top memecoin platform thanks to Pump.fun, is facing a decline in revenue. Data from Defillama shows a drop of over 50%, potentially due to decreased dApp activity, particularly in memecoins. This shift highlights BNB Chain’s growing appeal as a more robust ecosystem for memecoin projects.

Pump.fun’s Controversy and Four.meme’s Opportunity

Pump.fun, a Solana-based memecoin launch platform, once thrived, creating over 5 million tokens, according to Decrypt. However, it has recently been embroiled in controversy due to its livestream feature, where users engaged in extreme behavior, including suicide threats, violence, and illegal activities to promote tokens, as reported by Bankless. This led to a suspension of the livestream feature in November 2024, damaging Pump.fun’s reputation and raising user safety concerns. Weekly revenue dropped 66%, from $11 million to $6 million.

Meanwhile, Four.meme, the first memecoin launchpad on BNB Chain (as cited by DappBay), is gaining traction as a safer and more stable alternative. Four.meme operates with greater transparency and avoids the ethical concerns surrounding Pump.fun. Backed by BNB Chain’s expansive ecosystem, it has a 2025 technical roadmap focused on faster transactions and AI integration, according to BNB Chain Blog. This creates a favorable environment for memecoin growth, especially as Solana faces declining engagement.

Why BNB Chain Is the New Hotspot for Memecoins

BNB Chain offers lower transaction fees than Solana in some cases, coupled with strong community support and powerful dApp development tools. According to YCharts, the average transaction fee on BNB Chain in February 2025 was 0.0005 BNB (~$0.33 per transaction, with BNB priced at $546). While Solana’s fees are lower at $0.00125 per transaction, as per Solana Compass, BNB Chain compensates with a more stable ecosystem and initiatives like the TVL Incentive Program (reported by BNB Chain), attracting liquidity and memecoin investors.

Additionally, BNB Chain is seeing a surge in memecoin activity, with Four.meme playing a central role. According to DappBay, Four.meme has successfully launched multiple memecoins, leveraging BNB Chain’s ecosystem to attract users. This shift in liquidity suggests that BNB Chain is becoming the new hotspot for memecoin investors.

Pump.fun’s Future Prospects

Pump.fun has taken steps to improve its platform, such as launching “Pump Advanced,” an advanced trading terminal, and planning its own token release. However, no official plans have been announced regarding expansion to other blockchains like BNB Chain.

There is speculation that Pump.fun could follow Four.meme’s model, but the scenario remains uncertain and carries high risks due to the speculative nature of memecoins.

Conclusion

Pump.fun’s revenue decline highlights significant challenges, including legal troubles, controversies, and market saturation. Meanwhile, BNB Chain and Four.meme are attracting more liquidity, signaling a potential shift in the memecoin sector.