Some crypto experts assert that the Pump.fun meme coin platform is responsible for delaying the altcoin season. Let's examine the arguments for and against this viewpoint presented by the crypto community.
Criticism of Pump.fun
Miles Deutscher, a well-known analyst in the crypto community, called Pump.fun one of the main reasons for the delay of the altcoin season. According to him, the current market dynamics differ from previous cycles, when speculative capital flowed into altcoins with good liquidity. "The launch of Pump Fun is directly correlated to the destruction of the altcoin market vs BTC. The reason we've seen no major 'alt season' across majors is that the speculative capital that would've once poured into top 200 assets instead decided to jump the gun and flood into on-chain low caps instead," Deutscher wrote in X. Recently, retail investors have gotten overly enthusiastic about illiquid memecoins, many of which have sagged 70-80% from their peak values. A recent survey showed that over 60% of traders on Pump.fun are losing money. Deutscher emphasized that such a shift reinforced the bearish sentiment in the market and ultimately delayed the onset of the altcoin season.
Pump.fun as a Liquidity Black Hole
The Pump.fun platform appeared in April last year, which coincided with the altcoin season. Gradually, the meme coin craze captured speculative interest, causing altcoins to start having trouble attracting liquidity. "Pump Fun launched in April 2024. Exactly when this Altcoin run deviated from past cycles," noted EllioTrades, a prominent crypto trader. Pump.fun allows you to launch tokens instantly, not requiring coding skills or other specialized knowledge. The platform quickly gained popularity due to its simplicity. As of early 2025, Pump.fun's daily revenue was $14 million. Critics claim that the success of the platform for generating 'meme' coins has become a black hole for liquidity in the crypto market. A Web3 analyst under the nickname Mercek calls Pump.fun an insider scheme to steal liquidity. Since its inception, the Pump.fun platform has processed over $4.16 billion in transactions, with some proceeds going to centralized exchanges (CEX), exacerbating the depletion of the altcoin ecosystem.
Counterarguments
Not everyone agrees with the view that Pump.fun is to blame for the delay in the altcoin season. Blockchain analyst Rasrm, for example, argues that the market capitalization of the platform's tokens is not enough to significantly affect altcoin liquidity. Others emphasize that speculative capital doesn't always stay within the ecosystem. After a profitable transaction, it may leave the market without moving into new investments. Therefore, a more accurate indicator would be to determine the amount of capital that has flowed into Pump.fun. Despite the reasons for the delayed altcoin season, Pump.fun has significantly changed the flow of capital in the crypto market. According to a recent survey, Solana's founders disapprove of the platform, which casts doubt on its long-term viability. Meanwhile, Deutscher attributes Pump.fun's growth to increased regulation, which makes it difficult to launch honest projects. The SEC's pressure on CEX and token sales forces market participants to seek decentralized alternatives. Such conditions are fueling the rise of meme coins and gambling-style speculation, which is turning the crypto market into a casino. Some see this as a threat, while others view it as an effective tool for attracting new users.
Pump.fun stirs controversy in the crypto community by altering capital flow and complicating the start of a new altcoin season. Yet, perspectives on its role and impact vary.
