Tough times for Pump.fun, which has seen the price of its PUMP token plummet 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 this week, some are suffering more than others. Pump.fun’s PUMP has seen its price drop 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 lost 65% of its value since then. How can this be explained?
Volatility and Ongoing Litigation
Several factors appear to be behind this drop, 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.
These users accuse Pump.fun of operating a structurally biased market—in short, a Ponzi scheme. The memecoin launcher has indeed generated substantial trading volumes since its launch, but a negligible number of cryptocurrencies actually succeed once launched.
This sent a wave of panic through PUMP. Over the weekend, a PUMP whale sold $6.3 million worth of tokens, contributing to the downward pressure. Furthermore, the generally gloomy market sentiment has only worked against assets deemed particularly volatile, typically those linked to memecoins.
Hence the sharp decline in PUMP, which is struggling to regain stability. The damage to the Pump.fun narrative is done, in a context where launchers no longer generate the same enthusiasm. The selling pressure on PUMP could therefore be sustained.
