Is PUMP About to Crash? Looking at Pump.fun’s Revenue

Pump.fun, the Solana-based memecoin launchpad, is facing intense scrutiny as both its revenue and token price show troubling signs.

While recent data reflects a brief rebound in weekly revenue, the bigger picture raises serious concerns about PUMP’s sustainability. Investors are now asking…

Is Pump.fun on the verge of a collapse?

PUMP Price Analysis: A Fragile Setup

Source: Bitrue Platform

Currently, PUMP trades at $0.002872, marking a 20% decline within the last 24 hours. This sharp drop highlights the fragile state of the token amid worsening sentiment.

Technical indicators further confirm the bearish outlook:

1. Relative Strength Index (RSI): Below the neutral 50 mark, signaling weakening momentum and mounting bearish pressure.

2. Chaikin Money Flow (CMF): Turning negative, suggesting outflows and waning investor confidence.

With resistance at $0.0029 and the next support at $0.0024, PUMP risks further downside unless sentiment improves significantly.

Read Also: Pump.fun Surges Back to Dominance in Solana Memecoin Launchpad Battle

Why PUMP Price Declined: Weak Fundamentals

The PUMP price crash is not just a result of bearish sentiment, it’s also rooted in weak fundamentals.

July’s revenue fell to $24.96 million, a steep 80% drop from its $130 million peak. Simply put, fewer projects are minting tokens, which means Pump.fun’s cash flow is drying up.

This decline has left PUMP’s valuation overstretched. With a circulating supply of 354 billion tokens and a spot price near $0.003, the market cap sits around $1.06 billion.

Read Also: Pump.fun Buys Back Tokens at 40% Premium Despite Price Drop

Based on July’s annualized revenue of about $299.5 million, this gives a 4–5× revenue multiple, a figure suggesting the token is priced far above what fundamentals justify.

PUMP.fun Revenue Data: Temporary Recovery Amid Ongoing Pressure

Interestingly, Pump.fun recently recorded a six-month high in weekly revenue, generating $13.48 million. This was driven by renewed token-minting activity and boosted market share. However, despite this rebound, PUMP price conditions remain bearish.

The platform has also been conducting buybacks, using over $44.2 million to repurchase 10.37 billion tokens. Unfortunately, with the average buyback price of $0.004261 sitting above today’s market price, these efforts have failed to stabilize the token.

Source: AdamTech on X

Supply Concentration and Investor Concerns

Beyond revenue declines, supply concentration poses another serious risk. 

The top 10 wallets control about 75% of total supply, leaving PUMP vulnerable to large coordinated sell-offs.

Source: Intel.ARKM

Adding to investor unease, Pump.fun recently transferred 2.5 billion PUMP tokens (worth $9.19 million) to the global crypto exchange without providing any explanation.

This move raised speculation about potential sell pressure, with some even drawing comparisons to FTX’s opaque fund transfers.

PUMP Price Outlook: Bearish Momentum Persists

Given weak fundamentals, declining trust, and high supply concentration, PUMP bearish conditions are hard to ignore.

While a short-term bounce could occur if the token reclaims the $0.0029 support, sustained recovery seems unlikely unless Pump.fun addresses transparency issues and revives revenue growth.

If bearish momentum continues, PUMP could fall to $0.0024, putting it at risk of further cascading declines.

Read Also: Pump.fun (PUMP) Price Prediction August 2025: Can Breaking Out?

Conclusion

Pump.fun is caught between short-term revenue spikes and long-term structural weaknesses. Weak fundamentals, declining confidence, and concentrated supply mean the project is operating on fragile ground.

For now, investors should proceed with caution, any minor dip in activity could lead to another PUMP price crash.

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FAQ

Why is PUMP price declining?

PUMP’s decline is fueled by weak revenue, bearish technical signals, and investor distrust following unexplained token transfers.

What is Pump.fun’s revenue condition?

Revenue has dropped from $130M at its peak to just $24.96M in July. Despite a recent $13.48M weekly rebound, the platform’s topline remains unstable.

Is Pump.fun at risk of crashing?

Yes. High supply concentration, bearish price action, and overvaluation compared to revenue leave Pump.fun highly vulnerable.

Can PUMP recover?

A short-term bounce is possible if $0.0029 is reclaimed, but sustained recovery depends on improved transparency and consistent revenue growth.

What’s the biggest risk for PUMP investors right now?

The biggest risk is a coordinated sell-off from whale wallets, coupled with declining investor trust in the project’s transparency.