A sharp revenue decline and massive stablecoin transfers fuel concerns about renewed selling pressure on the fading memecoin market
Memecoin launchpad Pump.fun has drawn intense scrutiny after transferring more than $436 million in USDC to cryptocurrency exchange Kraken — a move that coincides with a steep drop in trading activity following October’s $19 billion crypto market crash.
The transfers, flagged by blockchain analytics platforms, have forced investors to question whether the platform is preparing for further liquidation as speculative appetite in the memecoin sector continues to cool.
Major Cash-Out Follows Market Turbulence
According to blockchain data, Pump.fun began moving large sums of stablecoins one week after October’s record market crash throttled risk-taking among retail traders.
The memecoin sector, previously one of the fastest-growing corners of the Solana ecosystem, has seen a sharp slowdown.
Pump.fun’s monthly revenue plunged to $27.3 million in November, down more than 50% from September’s $58.9 million, marking its weakest month since July.
While Pump.fun did not provide an immediate explanation for the transfers, a spokesperson said the internal team would comment “when they have the time,” leaving investors unsettled.
Investors Worry About Continued Sell Pressure
The sizable stablecoin movements have fueled criticism from traders who fear that additional liquidations may follow.
Analysts note that memecoin trading volumes were already tapering off before October, with the crash acting as an accelerator for the decline.
Nansen research analyst Nicolai Sondergaard said the downturn reflects retail exhaustion:
“Retail got burned repeatedly over the past few months, so the drop-off we’re seeing now is a continuation of that.”
He added that this isn’t the first time Pump.fun has been linked to large sell-offs, suggesting the possibility of continued disposals.
Blockchain intelligence platform Arkham reports that the Pump.fun-labeled wallet still holds about $855 million in stablecoins and $211 million in Solana (SOL) — leaving substantial amounts that could potentially move to exchanges.
Possible Withdrawals — Not Immediate Sales
Some onchain analysts, including EmberCN, believe the recent $436 million transfer may represent a withdrawal from institutional private placements of the $PUMP token conducted in June rather than direct selling pressure.
Even so, traders remain cautious.
One investor commented that Pump.fun’s onchain movements resemble “a full-time liquidation machine while everyone else is out here buying dips.”
With memecoin mania losing steam and Pump.fun’s revenue sliding sharply, the platform’s large-scale transfers have intensified market anxieties.
Whether the funds are being positioned for operational use or future sales remains unclear, but the sector’s weakened sentiment suggests that any additional movement could amplify volatility across the already-fragile memecoin ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.