There has been criticism from analysts regarding the emergence of new pump-and-dump tokens on the platform, as they are seen as diverting capital that would otherwise flow into altcoins, potentially causing a delay in the anticipated altcoin season.
Looking at historical patterns, there is an expectation of a shift towards altcoins, largely driven by FOMO and the increasing presence of speculative traders seeking quick gains in this fervent trading environment.
The Pump.fun platform, based on Solana [SOL], has garnered mixed reactions in the market following the launch of 52,000 tokens on February 7th.
Investors have raised concerns about how this trend might affect liquidity in the altcoin market of 2025. Some analysts suggest that the influx of capital into memecoins could potentially prolong the delay of the altcoin season this year.
The renowned analyst Ash Crypto initiated a discussion through a social media post (formerly on Twitter), questioning the impact of the numerous token launches on Pump.fun on the delay of the Altseason.
“52,000 tokens were introduced on pump dot fun yesterday, contributing to the delay in the Altseason.”
He noted that traders have been heavily speculating on Pump.fun memecoins, engaging in what he described as excessive “gambling” activities.
The platform’s ease of creating memecoins has attracted a significant number of speculative traders focused on quick profits rather than long-term investors supporting established utility altcoins.
The Rise of Memecoin Hype
Recently, Pump.fun has observed a surge in wallet addresses, indicating a growing interest in speculative trading among investors.
Despite the multitude of token launches, 80% of memecoins on the platform experienced a rapid decline from their peak values shortly after their hyped introductions. This pattern tends to favor early investors and disadvantage latecomers.
On-chain data reveals a correlation between the onset of President Donald Trump’s administration and the increase in speculative trading activities. Interestingly, the President’s family has shown their endorsement of memecoins through the launch of $TRUMP and $MELANIA tokens.
Pump.fun’s Surging Revenue
Pump.fun has witnessed a significant revenue surge, particularly following the introduction of $TRUMP and $MELANIA tokens commemorating President Donald Trump’s term.
Analysts argue that this substantial capital inflow could have potentially been directed towards utility altcoins such as Ethereum and related projects to kickstart the altcoin season.
While the distraction in liquidity proves advantageous for the Solana ecosystem, its long-term impact on advancing blockchain utility and adoption remains debatable.
According to SigmaSquared on social media, Pump.fun generated $1 billion in revenue in 2024 and was ranked as the tenth top “gambling” company for that year.
Comparing Memecoins Historically
Previous memecoins like Dogecoin and Shiba Inu have left lasting impressions within their communities. However, Pump.fun memecoins seem to lack the same level of community support, reminiscent of many coins during the 2017 ICO bubble that crashed shortly after their launch.
While memecoins can attract early adopters, disillusionment often follows for many investors. Consequently, a shift towards utility altcoins may occur as investors seek diversification to mitigate losses, potentially marking the beginning of the altcoin season this year.