Why did the price of PUMP go up?

Pump.fun (PUMP) increased by 2.57% in the last 24 hours, reversing a 7-day drop of nearly 25%, and continuing a strong 30-day upward trend of over 60%. Here’s why:

1. Launch of Project Ascend (Positive Impact)
   Creator Capital Markets (CCM) went live, boosting token creation and activity on the Solana blockchain.

2. Federal Reserve Rate Cut (Mixed Impact)
   The first interest rate cut of 2025 improved overall crypto market sentiment, but PUMP’s gains lagged behind Bitcoin’s.

3. Strong Revenue Performance (Positive Impact)
   Pump.fun earned $3.38 million in daily revenue on September 17, outperforming competitors like Hyperliquid.

Detailed Analysis

1. Project Ascend Launch (Positive Impact)

What happened?
On September 18, Pump.fun launched “Project Ascend,” introducing Creator Capital Markets (CCM). This new system replaced flat fees with a tiered fee structure that rewards creators for sustainable growth. Since the launch, token creation increased by over 40%, and memecoin trading volumes on Solana rose significantly (WEEX).

Why it matters:
CCM encourages creators to focus on genuine engagement rather than quick pump-and-dump tactics. This helps the platform grow steadily. More token launches mean higher transaction fees (1% per trade) and increased demand for PUMP tokens.

What to watch:
Keep an eye on how many CCM tokens move to PumpSwap DEX, as this shows real, organic adoption of the platform.

2. Federal Reserve Rate Cut & Market Rotation (Mixed Impact)

What happened?
On September 17, the Federal Reserve cut interest rates by 0.25%, easing pressure on markets. Bitcoin’s price jumped 3.3% after the announcement, but PUMP only rose 2.57%, underperforming the broader crypto market’s 0.77% gain.

Why it matters:
While the rate cut improved overall market sentiment, PUMP’s smaller gain suggests that factors specific to this coin are influencing its price. The Fear & Greed Index remains cautious at 34/100, which limits enthusiasm for altcoins like PUMP.

3. Revenue & Buyback Activity (Positive Impact)

What happened?
On September 17, Pump.fun generated $3.38 million in daily revenue, surpassing Hyperliquid, with nearly $1 billion in trading volume (Gemini). Since July, the platform has bought back 6.7% of PUMP’s circulating supply.

Why it matters:
Strong revenue shows the platform is gaining traction. Buybacks help reduce selling pressure, supporting the token’s price. However, PUMP’s low turnover ratio (0.173) means liquidity is thin, which can cause bigger price swings.

Conclusion

PUMP’s recent price increase is driven by the launch of CCM and positive macroeconomic news. However, technical indicators remain weak (RSI at 45.12, below the 7-day moving average).

Key point to watch: Can PUMP hold the $0.0052 support level and push above the 30-day moving average at $0.00556? Also, monitor Solana’s memecoin trading volumes, as they are a leading indicator of PUMP’s fee revenue.

What could affect the price of PUMP?

PUMP’s price swings between memecoin hype and the platform’s real value.

1. New Creator Rewards – Updated fees help creators earn more, encouraging more activity on the platform (Weex).
2. Big Investor Selling Pressure – A recent $8.25 million sale by a large holder could lead to more profit-taking (AMBCrypto).
3. Federal Reserve Rate Cut Effects – Lower interest rates may boost crypto demand, but PUMP hasn’t kept up with Bitcoin’s recent 5% jump (NewsBTC).

In-Depth Look

1. Better Creator Payouts (Positive for PUMP)

What happened: On September 18, Pump.fun rolled out a new fee system called Dynamic Fees V1. This lets creators earn up to 10 times more as their tokens grow in value. This change encourages creators to focus on long-term growth instead of quick price spikes. Since the update, new token launches increased by 40%, and Solana memecoin trading volumes went up.

Why it matters: More creators sticking around means steady demand for PUMP. The platform shares 25% of its fees (about $3.38 million daily) with token holders. Similar fee-sharing updates in the past led to 30% price increases within two weeks.

2. Risks from Large Holder Selling (Negative for PUMP)

What happened: On September 17, a large investor sold 1 billion PUMP tokens, worth $8.25 million, making a $3.86 million profit. At the same time, derivatives trading (bets on price movements) rose to $1.21 billion, up 10%, which can increase price swings.

Why it matters: Over half of the circulating PUMP supply is held by early buyers who paid more than current prices. If prices fall below $0.0048 (the July presale price), panic selling could speed up. The Relative Strength Index (RSI) is at 33.97, showing the token is oversold, but it needs to stay above $0.0042 (August low) to avoid a 20% drop.

3. Market Trends and Memecoin Shifts (Mixed Impact)

What happened: The Federal Reserve’s recent interest rate cut boosted overall crypto interest, but PUMP only rose 1.7%, less than Solana’s 3% gain. Also, Solana memecoin dominance dropped to 84% as a new competitor, LetsBonk.fun, gained popularity.

Why it matters: PUMP’s price is closely tied to Solana’s performance. If Solana breaks above $239, it could spark renewed excitement for memecoins. However, the Altcoin Season Index moving from 70 to 78 suggests investors might shift back to Bitcoin if economic uncertainty grows.

Summary

PUMP’s future depends on balancing steady growth from creators with the risks of big investors selling. The new fee system could boost revenue significantly, but after a 115% gain in 60 days, the token is vulnerable to market pullbacks. Watch the $0.0042 support level closely—holding here could mean buyers are stepping in, but falling below might cause a liquidity squeeze.

Will PUMP’s buybacks (over $59 million spent since July) be enough to offset large investor sales, or is this a typical “sell the news” moment after a 150% rally?

What are people saying about PUMP?

Talk around Pump.fun (PUMP) swings between optimism about buybacks and worries about big holders selling off. Here’s the quick summary:

1. A $30 million buyback has sparked hope but faces resistance challenges.
2. After the ICO, large holders sold $101 million worth of PUMP, risking a 40% price drop.
3. Technical indicators suggest a possible rebound if the price breaks above $0.0034.

Deep Dive

1. Buyback vs. Whale Selling: Mixed Signals

According to @Lookonchain, Pump.fun recently bought back 2.99 billion PUMP tokens at $0.0064 each, which is 87% higher than the current price. This move aims to reduce the number of tokens available and boost confidence. However, large holders (often called “whales”) sold 29.5 billion PUMP tokens below the ICO price.
– @CryptoPatel (189K followers · 2.1M impressions · August 8, 2025)
View original post
What this means: The situation is mixed. Buybacks show confidence from the project, but the selling pressure from whales and ICO investors (who hold 55% of the supply) could push prices down.

2. Revenue Up, Trust Down: Bearish Signs

@WalletInvestor reports that while PUMP’s weekly revenue reached a six-month high, the token’s price dropped 25% this month. This raises concerns about the project’s long-term viability despite active user engagement.
– CMC Community Post (12K impressions · August 19, 2025)
View original post
What this means: This is a bearish sign. Even though the platform is generating more revenue, it’s not translating into demand for the token, suggesting skepticism about PUMP’s usefulness.

3. Technical Outlook: Possible Bullish Rebound

@mkbijaksana points out that PUMP might form a higher low and target prices above $0.0042 if it breaks the 21-day Exponential Moving Average (EMA). The current resistance level to watch is $0.0034.
– @mkbijaksana (47K followers · 320K impressions · August 27, 2025)
View original post
What this means: From a technical perspective, this is bullish. The price pattern suggests accumulation, but a strong volume is needed to confirm a breakout above the ICO resistance level.

Conclusion

The outlook for Pump.fun (PUMP) is mixed. On one hand, aggressive buybacks show confidence, but on the other, large holders continue to sell, creating downward pressure. The Glass Full Foundation initiative briefly boosted prices by 7%, but platform revenue has dropped 97% since January, weakening positive expectations. Watch the $0.0034 price level closely—a sustained break above it could spark short-term gains, while failure to break may confirm bearish trends. Also, keep an eye on token movements from ICO wallets, which hold 55% of the circulating supply.

What is the latest news about PUMP?

Pump.fun is capitalizing on the growing popularity of memecoins by offering new incentives for creators and seeing record trading volumes, while large investors (whales) contribute to market ups and downs. Here’s the latest update:

1. Creator Capital Markets Launch (September 18, 2025) – New fee tiers designed to support long-term memecoin projects.
2. 150% Price Surge (September 17, 2025) – New streaming features lead to record token launches and top DeFi revenue.
3. $1 Billion Daily Trading Volume (September 14, 2025) – Platform activity spikes as the memecoin market surpasses $83 billion in value.

In-Depth Look

1. Creator Capital Markets Launch (September 18, 2025)

What happened: Pump.fun rolled out Creator Capital Markets (CCM), replacing a flat fee system with tiered fees based on project size. Smaller projects under $50,000 market cap now pay a 15% fee (up from 5%), with 80% of fees going directly to creators. Since the launch, new token creation and project success rates have increased by 40%.

Why it matters: This new system rewards creators who build lasting projects, aiming to reduce quick “pump-and-dump” schemes. However, some critics worry it might encourage more projects but not necessarily better quality ones. (WEEX)

2. 150% Price Surge (September 17, 2025)

What happened: The price of Pump.fun’s token, PUMP, jumped 150% in one month after introducing streamer-backed tokens. These tokens now make up 90% of new memecoin launches on the platform. On September 16, Pump.fun generated $3.38 million in daily revenue, surpassing some Ethereum Layer 2 networks.

Why it matters: The new streaming features attract more retail investors but could split trading liquidity, making it harder to buy or sell tokens quickly. Additionally, derivatives trading (contracts based on token prices) reached $1.21 billion in open interest, showing increased speculative activity. (CryptoNews)

3. $1 Billion Daily Trading Volume (September 14, 2025)

What happened: On September 14, Pump.fun processed $1.02 billion in trades, with total value locked (TVL) hitting $334 million. This growth coincided with the overall memecoin market reaching $83 billion, up 8% in one day.

Why it matters: Pump.fun now competes with platforms like Kick for livestream engagement, holding about 10% of the market share. However, sustainability remains a concern since nearly 99% of new tokens fail to maintain value or activity. (Cointribune)

Conclusion

Pump.fun’s new Creator Capital Markets and streaming features have strengthened its role in Solana’s memecoin scene. Still, market swings driven by large investors and reliance on speculative trading cycles pose risks. With the Federal Reserve cutting interest rates and encouraging risk-taking, the big question is whether Pump.fun’s creator rewards can sustain momentum beyond the current hype.

What is expected in the development of PUMP?

Pump.fun’s roadmap is centered on boosting its ecosystem through incentives, governance improvements, and liquidity support.

1. Dynamic Fees V1 (September 3, 2025) – A tiered fee system designed to reward token projects that grow sustainably.
2. Creator Capital Markets (September 18, 2025) – A way for creators to earn by linking their influence to token rewards.
3. Glass Full Foundation (August 8, 2025) – Funding to support projects within the Solana blockchain community.

In-Depth Look

1. Dynamic Fees V1 (September 3, 2025)

What it is:
Pump.fun is rolling out a tiered fee structure called Project Ascend. This means smaller, newer tokens pay higher fees, while more established projects pay less (CCN). The goal is to discourage quick “pump-and-dump” schemes and encourage creators to invest more in their projects’ growth.

Why it matters:

• Positive: Encourages better-quality projects, which could make PUMP more valuable as a governance token.
• Potential downside: There might be some short-term price swings as creators adjust to the new fees.

2. Creator Capital Markets (September 18, 2025)

What it is:
The CCM program allows creators—like streamers or influencers—to earn PUMP tokens based on how engaged their audience is (WEEX). The more their community grows and interacts, the more tokens they receive, creating a cycle that rewards active participation.

Why it matters:

• Positive: Links PUMP’s value directly to platform activity, encouraging users to stay engaged.
• Potential downside: There’s a risk of people trying to game the system by faking engagement.

3. Glass Full Foundation (August 8, 2025)

What it is:
The GFF is a nonprofit that provides funding to projects built on the Solana blockchain, especially those with loyal communities (CoinMarketCap). While the exact criteria for funding aren’t fully clear, this shows Pump.fun’s commitment to supporting the broader ecosystem.

Why it matters:

• Positive: Helps grow Solana’s decentralized finance (DeFi) space, which could increase PUMP’s adoption.
• Potential downside: Without clear transparency on how projects are chosen, the impact might be limited.

Conclusion

Pump.fun is shifting from quick, hype-driven launches to building a more sustainable ecosystem. By reforming fees, enabling creators to monetize their influence, and supporting liquidity in the Solana community, Pump.fun aims to strengthen PUMP’s role and value. Success will depend on clear communication and avoiding speculative bubbles.

Will Pump.fun’s focus on governance and creator rewards help it outpace competitors like LetsBONK.fun?

What updates are there in the PUMP code base?

Pump.fun’s recent software updates focus on encouraging more trading activity and improving the platform experience.

1. Incentive Program Added (July 28, 2025) – New features suggest rewards based on trading volume for token creators.
2. Version 2.0 Launch (June 28, 2025) – Added real-time price alerts and easier trading options.

Deep Dive

1. Incentive Program Added (July 28, 2025)

What’s new: Pump.fun’s code now supports customizable rewards linked to how much trading happens with tokens created on its platform.

Developers noticed updates to the PumpSDK that include tools for tracking trades and giving out PUMP token rewards. This move seems aimed at competing with platforms like BONK.fun.

Why it matters: This could be good news for PUMP because it might encourage more users to trade and create tokens on Pump.fun. More activity could increase demand for PUMP tokens. However, it’s still unclear if these rewards will keep users engaged over the long term.
(Source)

2. Version 2.0 Launch (June 28, 2025)

What’s new: The update brought features like live price tracking, one-click trades, and a “Movers Feed” showing popular tokens.

Technical improvements focused on speeding up transactions on the Solana blockchain and making the mobile app easier to use. Despite these changes, PUMP’s token price didn’t see an immediate boost.

Why it matters: These updates improve the user experience, which can attract more casual traders. But they don’t directly improve the token’s usefulness or liquidity. Faster trades help reduce costs but don’t solve bigger market challenges.
(Source)

Conclusion

Pump.fun’s latest updates aim to keep users engaged and make the platform smoother to use. Still, whether the new trading rewards will lead to lasting growth or just a short-term spike in activity remains to be seen in the competitive memecoin space.