Bad times for Pump.fun, which has seen the price of its PUMP token collapse over the week. How can this sharp drop be explained, and will it last?
Pump.fun’s PUMP price plummets over the week
While the entire spot market has been sluggish over the week, some are suffering more than others. Pump.fun’s PUMP has seen its price fall by 30% over the last 7 days.
Launched in the summer of 2025, the PUMP token is new to the market. It peaked at $0.008 in September but has since lost 65% of its value. How can this be explained?
Volatility and ongoing litigation
Several factors appear to be behind this decline, but the main one is a lawsuit targeting Pump.fun. This week, it was revealed that the memecoin launcher is facing a class action lawsuit from certain users.
The latter accuse Pump.fun of offering a structurally biased market, in short, a Ponzi scheme. The memecoin launcher has indeed generated considerable volumes since its launch, but a negligible number of cryptocurrencies have been successful once launched.
This has caused panic on PUMP. Over the weekend, a PUMP whale sold $6.3 million worth of tokens, contributing to the downward pressure. In addition, the rather gloomy market sentiment has only disadvantaged assets considered particularly volatile, typically those linked to memecoins.
Hence the sharp decline in PUMP, which is struggling to regain stability. The damage to Pump.fun’s narrative is done, in a context where launchers no longer generate the same enthusiasm. The selling pressure on PUMP could therefore be long-lasting.
