Pump.fun is at risk of complete collapse as on-chain metrics and revenue are currently not looking promising. As indicated, monthly revenue in July fell to $24.96 million. This figure is about 80% lower than the peak of $130 million, indicating that this launchpad platform is experiencing a serious decline in revenue.
Simply put, fewer and fewer projects are releasing new tokens, causing cash flow to dry up quickly. The consequence is that the platform cannot sustain itself. Yet, PUMP is still being traded at 4.7 times its annual revenue – a fairly high figure.
So, where does that 4.7 times come from? Pump.fun recorded revenue of $24.96 million in July, which annualizes to about $299.5 million. With 354 billion tokens in circulation and a market price of $0.0028, the market capitalization is around $1.02 billion.
This brings the revenue multiple to around 4–5 times. Therefore, based on fundamentals compared to price, PUMP is quite highly valued. In other words, the price of PUMP is higher than the revenue that could support it.
Pump.fun Is Running Out
Thus, PUMP is in a difficult situation, but the high valuation doesn't help much. Over the past month, the price has dropped more than 33%. Combined with weak growth and revenue, this makes the token weak. Any drop in activity could trigger a rapid sell-off. Worse, the concentration of supply of Pump.fun remains at a dangerous level. The top 10 wallets hold about 75% of the total tokens, making PUMP vulnerable to a mass dump.
In every aspect, PUMP is facing a risk situation. Weak revenue, stagnant growth, and extreme supply concentration make this token very vulnerable to any drop in activity.
With the token being traded significantly higher than its intrinsic value, even a small slowdown can lead to a strong sell-off, laying the groundwork for real pressure. Therefore, Pump.fun is certainly a project to watch.
