Solana-based memecoin launchpad Pump.fun has exceeded $300 million in deposits to cryptocurrency exchange Kraken, according to on-chain data. On January 1, 2025, the platform moved another 120,000 SOL, valued at approximately $14.76 million, bringing its total deposits to 1,500,893 SOL.
Transaction Highlights
- Sales on Kraken: Pump.fun has sold 264,373 SOL for $41.64 million USDC, according to on-chain analytics account Lookonchain.
- Current Holdings: The Pump.fun fee account holds 70,284 SOL, valued at over $14.4 million, and $24.4 million in Jito Staked SOL.
Declining Metrics
Pump.fun’s recent transfer comes amid a notable decline in key metrics:
- Trading Volume: The daily trading volume of tokens launched by Pump.fun on decentralized exchange Raydium has dropped from a peak of $2.58 billion on November 19, 2024, to significantly lower levels.
- Revenue: The platform’s daily revenue fell from a high of $5.31 million on November 24, 2024, to $2.12 million as of January 1, 2025.
- Network Activity: Solana’s real economic value has declined from $27.6 million on November 24, 2024, to $4.65 million by the end of December 2024. Weekly transaction fees on the network reflect similar trends.
Scrutiny and Controversy
The decline in activity comes as Pump.fun faces increasing scrutiny:
- Regulatory Oversight: Last month, Chainalysis expanded its analytics to cover Pump.fun-created memecoins, aiming to assist governments in investigating scams and rug pulls.
- Streaming Feature Suspension: In November, Pump.fun drew criticism for its controversial live-streaming feature, which some viewed as promoting harmful content. The feature was suspended shortly after public backlash.
Future Outlook
While Pump.fun’s substantial deposits to Kraken highlight its ongoing activity in the crypto space, the platform’s declining metrics and controversies underscore challenges facing the broader Solana ecosystem and the memecoin sector. Whether Pump.fun can sustain its momentum and address regulatory and community concerns remains to be seen.
