Meme Coin Market Suffers Sharp Decline After Pump.fun Announcement
The meme coin sector faced a steep correction today as Pump.fun co-founder Alon Cohen confirmed that the long-rumored Pump airdrop will not happen in the immediate future. His statement, delivered during a discussion with influencer Threadguy, sent shockwaves through the market, erasing nearly $1.2 billion in cumulative meme coin value within hours. The news triggered panic selling across leading tokens, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).
Dogecoin, the largest meme coin by market capitalization, dropped 7%, while SHIB and PEPE followed closely with similar losses. The broader meme coin index fell 10.7% over 24 hours, marking one of the steepest single-day declines of the quarter. Analysts suggest the abrupt sentiment shift reflects fading retail excitement amid repeated delays in meme-related token incentives.
Pump Token and Meme Ecosystem Enter Correction Phase
The Pump token itself was among the hardest hit, plunging 17.7% and dropping out of the top 100 cryptocurrencies by market cap. Market analysts attribute this decline to evaporating speculative interest following the airdrop cancellation. The decision ended weeks of anticipation that had driven Pump’s price surge earlier this month.
Prediction markets now assign only a 3% probability of an airdrop occurring by month-end — a sharp drop from the 86.6% odds priced in just days ago. The collapse in expectations has cascaded into widespread meme coin liquidation, with traders exiting short-term speculative positions.
Dogecoin Holds Above Key Support Despite Market Volatility
Despite the selloff, Dogecoin remains resilient compared to newer meme tokens. DOGE’s price stabilized near $0.126, supported by moderate trading volume and long-term holder accumulation. Analysts at IntoTheBlock noted that Dogecoin’s on-chain activity and wallet growth remain steady, indicating that much of the recent selling came from short-term traders.
Technically, DOGE faces immediate resistance near $0.135, with support holding around $0.120. A sustained move below this level could expose the token to further downside toward $0.110, while recovery above $0.138 could reestablish bullish momentum.
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Pump.fun’s Market Position Weakens as Competitors Surge
Pump.fun’s decline is also tied to growing competition from LetsBONK, another Solana-based token launchpad that has dominated token creations for 16 of the past 17 days. As developers and users migrate to alternative platforms, Pump.fun’s market share continues to shrink. Tokens created through Pump.fun — including GOAT (-15.5%), Moo Deng (-13.2%), and Peanut the Squirrel (-12.8%) — saw double-digit losses amid broader selling pressure.
LetsBONK’s rise underscores the volatile nature of meme-based token ecosystems, where user engagement and speculative hype often dictate short-term valuations. The shift in token creation activity suggests that traders are diversifying toward platforms with stronger liquidity and faster launch turnaround.
Investor Sentiment Turns Cautious Across Meme Coin Sector
Investor confidence across the meme coin market has cooled following the Pump.fun announcement. Many traders view the absence of an airdrop as a missed catalyst that could have reignited retail participation. Social media sentiment indicators from LunarCrush show a 28% decline in meme coin-related mentions, suggesting waning community enthusiasm.
Market experts caution that meme coins may face continued headwinds if the sector fails to deliver new catalysts. With regulatory scrutiny increasing and liquidity tightening across decentralized exchanges, speculative appetite could remain subdued into November.
Cautious Consolidation Expected for Dogecoin and Peers
Looking ahead, analysts expect Dogecoin and other top meme coins to enter a phase of range-bound trading as investors digest recent losses. For DOGE, maintaining support above $0.120 will be critical to preventing deeper declines. Meanwhile, renewed optimism may depend on broader crypto market recovery and potential ecosystem developments, such as integrations or upcoming events in the Dogecoin Foundation roadmap.
In the near term, the meme coin market appears poised for a period of stabilization following this correction. While long-term believers continue to hold, speculative traders are likely to remain cautious until new catalysts emerge. For now, Dogecoin’s stability relative to peers reinforces its status as the most established asset within an otherwise unpredictable sector.
