Meme coins have been a staple in crypto markets, and Pump.fun has made it easy for anyone to launch their own on the Solana blockchain. The platform’s success has sparked a giant speculative boom, with people trading 24/7 like they’re at a social casino.
Pump.fun earns tens of millions of dollars per week from fees on its platform. To graduate to trade on the Solana blockchain, tokens must meet certain conditions and pay a fee of around $900. Despite this, many tokens fail to make it.
The market’s decline is largely attributed to the prices of big coins like Bitcoin (BTC) and Solana (SOL), which have been falling. The total crypto market cap has dropped by over 12% since February 20, according to CoinGecko data.
However, experts point out that this phenomenon always repeats itself. As the fun in the market gets sucked out by sophisticated trading bots, people start feeling taken advantage of and quit trading. It’s too early to say if this market is done for, but a similar crash occurred when the Trump coins were launched using a different platform.
The Pump.fun co-founder notes that the top of $TRUMP saw significant losses, but believes it’s not the cause of the current slump. He attributes it to tokens being sensitive to big coin prices, which have been under pressure lately.
Source: https://www.axios.com/2025/03/01/trump-crypto-summit-white-house