Why did the price of PUMP fall?
Pump.fun (PUMP) dropped 24.3% in the last 24 hours, underperforming the overall crypto market, which fell by 5.7%. The main reasons for this decline are:
- Competitor growth – BNB Chain’s Four.Meme earned more daily revenue than Pump.fun.
- Challenges in the Solana ecosystem – DeFi total value locked (TVL) is down, and interest in memecoins is fading.
- Technical price weakness – The price fell below important support levels.
In-Depth Analysis
1. Competitor Launchpad Takes the Lead (Negative for Pump.fun)
On October 8, BNB Chain’s Four.Meme made $1.4 million in daily revenue, beating Pump.fun’s $885,000. This shows that investors are moving their money to BNB’s meme coin ecosystem, attracted by lower fees and perks like 4x trading boosts. Since July, Pump.fun’s weekly revenue has dropped 45%, indicating it’s losing market share.
What this means:
- Traders prefer platforms that offer easier ways to cash out, such as Binance Alpha listings.
- Less activity on Pump.fun reduces demand for its native token, PUMP.
Keep an eye on: Whether Four.Meme can keep up its revenue and how Pump.fun’s buyback programs perform.
2. Pressure on Solana’s Ecosystem (Mixed Effects)
Solana’s DeFi TVL fell by 33% in the third quarter of 2025, partly because of less activity on Pump.fun (source). At the same time, Zora, a competitor to Pump.fun, gained 35% after being listed on Robinhood, pulling speculative investors away.
What this means:
- Solana’s weakening position in memecoins adds pressure on PUMP’s price.
- Additional challenges like regulatory concerns make the situation tougher.
3. Technical Analysis Shows Weakness (Bearish Signs)
PUMP’s price dropped below its 30-day simple moving average ($0.0064) and the 38.2% Fibonacci retracement level ($0.00589). The Relative Strength Index (RSI) is at 33, indicating the token is oversold, but the MACD histogram is still negative (-0.000241), which points to ongoing downward momentum.
What this means:
- Sellers are in control; the next important support level is at $0.00407 (61.8% Fibonacci retracement).
- Any short-term price increases may face resistance around $0.005.
Conclusion
The recent drop in PUMP’s price is due to increased competition, a cooling Solana ecosystem, and technical selling pressure. Although the token is oversold and could see a short-term bounce, it needs to break back above $0.005 to signal a potential recovery.
What to watch: Can Pump.fun’s buyback program, which uses 102% of its revenue, counteract large sell-offs by big holders? Keep an eye on whale wallet activity and meme coin trends on BNB and Solana chains.
What could affect the price of PUMP?
The future of Pump.fun (PUMP) depends on whether the excitement around memecoins continues and how well the platform innovates.
- New Creator Incentives – Project Ascend’s tiered fee system could encourage higher-quality tokens (positive sign)
- Competition from BNB Chain – Four.Meme’s $1.4 million daily revenue challenges Solana’s lead (negative sign)
- Token Buybacks – $19.2 million spent buying back tokens at prices 87% above current market value (mixed impact)
In-Depth Analysis
1. Platform Improvements & Token Economics (Positive Outlook)
Summary: Pump.fun’s Project Ascend has introduced a new fee structure where smaller tokens pay higher fees, which decrease as they grow. This aims to reduce scams and keep creators engaged. Along with a $30 million buyback program (using 118,350 SOL), these efforts are designed to strengthen PUMP’s value.
What this means: By improving token quality and buying back tokens, the platform hopes to reduce selling pressure and balance inflation. However, the average buyback price ($0.0064) is much higher than the current price ($0.00392), which could create resistance to price growth (CoinMarketCap).
2. Competition from BNB Chain (Negative Outlook)
Summary: Four.Meme, a memecoin platform on the BNB Chain, has overtaken Pump.fun in daily revenue ($1.4 million vs. $885,000) as of mid-October 2025. This success is driven by lower fees and strong interest from Chinese retail investors. Binance’s new Meme Rush launchpad also adds competition.
What this means: Solana’s decentralized finance (DeFi) total value locked (TVL) dropped 33% in the third quarter of 2025, weakening Pump.fun’s ecosystem. If BNB Chain continues to dominate, it could pull liquidity away from PUMP, putting pressure on its daily trading volume of $915 million (DappRadar).
3. Market Trends & Sentiment (Mixed Outlook)
Summary: PUMP’s Relative Strength Index (RSI) is very low at 19.29, indicating the token is oversold. However, its price is below key moving averages (7-day average is $0.0059). Social media mentions surged to 20,000 per day in October, but platform revenue has dropped 97% from January highs.
What this means: There is potential for a price rebound due to oversold conditions, but declining user activity (40% drop in weekly active wallets) and negative technical indicators suggest any rallies might be short-lived unless new popular tokens spark renewed interest.
Conclusion
Pump.fun’s success will depend on whether Project Ascend’s incentives can outpace competition from BNB Chain and if buybacks can offset large token sales by early investors. Watch the $0.0034 price support closely—a drop below this could lead to a 40% decline to July lows ($0.0023). Holding above this level might allow a price increase toward $0.005. The key question is whether Pump.fun’s social features can revive its reputation as the “TikTok of crypto” before competitors take the lead.
What are people saying about PUMP?
The Pump.fun (PUMP) community is divided between hope from recent buybacks and concern over large holders selling off. Here’s the latest:
- A $19.2 million buyback is encouraging but faces price resistance.
- Big investors who bought during the ICO are selling $101 million worth of tokens, risking a 40% price drop.
- The Glass Full Foundation is adding liquidity through new memecoin partnerships, stirring mixed reactions.
In-Depth Look
1. Buyback at a Premium Signals Optimism
According to @Lookonchain, Pump.fun spent 118,350 SOL (about $19.2 million) to buy back nearly 3 billion PUMP tokens at an average price of $0.0064 each.
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What this means: Buybacks reduce the number of tokens available on the market, which can help support the price. However, the buyback price is 87% higher than the current price of $0.0039, which could create resistance and make it harder for the price to rise quickly.
2. Large Investors Selling Could Push Price Down
@CryptoPatel reports that two major funds sold 29.5 billion PUMP tokens below the ICO price. If the price falls below $0.0034, it could trigger a 40% crash.
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What this means: This is a bearish sign because investors who bought early still hold 55% of all tokens. The initial ICO price of $0.004 now acts as a psychological barrier. Additionally, over half of current holders are at a loss, which may lead to more selling pressure.
3. New Liquidity Pools Bring Mixed Reactions
The official Pump.fun account @PumpDotFun announced that the Glass Full Foundation is launching liquidity pools with memecoins like FARTCOIN and Peanut Squirrel.
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What this means: This move could increase platform activity and attract users. However, some critics point out that Pump.fun’s revenue has dropped 97% since January, when it peaked at $7 million, raising concerns about long-term sustainability.
Conclusion
The outlook for Pump.fun (PUMP) is mixed. On one hand, buybacks and new liquidity programs show proactive efforts to support the token. On the other, large holders selling and declining revenue pose risks. The key price level to watch is $0.0034 — breaking above this could signal a positive trend, while falling below may confirm a bearish outlook. With market sentiment leaning toward fear (Fear & Greed index at 35), it remains to be seen if Pump.fun’s initiatives can overcome the current challenges.
What is the latest news about PUMP?
Pump.fun (PUMP) is riding the wave of memecoin popularity but is facing tough competition. Here are the latest updates:
- BNB Chain Competitor Surges (October 9, 2025) – Four.Meme beats Pump.fun in daily revenue, earning $1.4 million compared to Pump.fun’s $885,000.
- Binance Launches New Meme Platform (October 9, 2025) – Binance partners with Four.Meme to launch Meme Rush, challenging Pump.fun’s lead.
- Strong Social Media Presence (October 10, 2025) – PUMP is among the top 5 memecoins with over 20,000 daily mentions.
In-Depth Look
1. BNB Chain Competitor Surges (October 9, 2025)
What happened:
On October 8, Four.Meme, a memecoin on the BNB Chain, made $1.43 million in revenue in 24 hours, surpassing Pump.fun’s $885,000. This is the first time Four.Meme has taken the lead, helped by lower fees and popular Chinese-themed tokens like PALU, which surged over 2,200%. Despite this, Pump.fun still leads in weekly revenue ($8.34 million vs. $1.4 million). This shows growing competition between blockchains.
Why it matters:
This is neither good nor bad for Pump.fun right now—it reflects a competitive market rather than a problem with Pump.fun itself. But if Pump.fun keeps losing revenue, it could affect its buyback program, which uses fees to reduce the number of tokens in circulation. (Cryptotimes.io)
2. Binance Launches New Meme Platform (October 9, 2025)
What happened:
Binance Wallet teamed up with Four.Meme to create Meme Rush, a platform on the BNB Chain for making and trading memecoins. It has a three-step token lifecycle and requires tokens to reach a $1 million market cap before moving to decentralized exchanges. Four.Meme’s daily revenue of $1.4 million is now three times Pump.fun’s $576,000.
Why it matters:
This is a short-term challenge for Pump.fun. Binance’s strong backing and liquidity could attract many users away from Pump.fun. Pump.fun’s revenue dropped 40.7% last week and might face more pressure unless it improves its platform. (Crypto.news)
3. Strong Social Media Presence (October 10, 2025)
What happened:
Pump.fun is one of the top 5 memecoins in October, with over 20,000 daily mentions on social media, according to Bit2Me. Experts say Pump.fun helps make token creation accessible without coding, but they caution that hype alone doesn’t guarantee long-term success.
Why it matters:
This is positive for Pump.fun because strong social buzz can boost trading activity. However, the token’s price dropped 24.7% in 24 hours, showing that investor confidence is still fragile. Keeping an eye on social trends alongside price changes is important. (Bit2Me)
Conclusion
Pump.fun is balancing its popularity as a memecoin with growing competition and uncertain market feelings. While its social media presence shows it has a strong community, Binance’s aggressive moves on the BNB Chain are a serious threat to its revenue. The question is whether Pump.fun can use its early lead to stay competitive or if newer platforms will take over during the next altcoin season.
What is expected in the development of PUMP?
Pump.fun is focusing on growing its ecosystem and rewarding users.
- Volume Incentives (Q4 2025) – A 30-day program to reward trading activity with PUMP tokens.
- EVM Chain Expansion (2026) – Plans to support multiple blockchains beyond Solana.
- Governance Activation (Q4 2025) – Token holders will get voting rights on platform decisions.
Deep Dive
1. Volume Incentives (Q4 2025)
Overview: Updates to Pump.fun’s software suggest a 30-day rewards program where traders earn PUMP tokens based on their activity. Leaked test files hint at daily rewards of around 1 billion PUMP tokens, which could be about 3% of all tokens in circulation each month (Dumpster DAO).
What this means: This could boost trading volume and liquidity in the short term, which is positive. However, there’s a risk that giving out too many tokens might lower their value. It’s important to watch daily trading numbers and how many tokens are being permanently removed from circulation (burned).
2. EVM Chain Expansion (2026)
Overview: Internal documents suggest Pump.fun plans to expand beyond the Solana blockchain to include Ethereum and other blockchains compatible with Ethereum’s technology (called EVM chains). This move aims to compete with Bonk.fun, a rival platform (Cryptoslate).
What this means: Expanding to more blockchains could attract more users and creators, especially those already on Ethereum. However, delays or splitting liquidity across chains could pose challenges.
3. Governance Activation (Q4 2025)
Overview: Pump.fun plans to let PUMP token holders vote on important platform decisions like upgrades and how funds are used (Coinlive).
What this means: Giving users a say in the platform’s future could encourage long-term commitment. But for this to work well, the voting system needs to offer real benefits beyond just speculation. Keep an eye out for announcements about rewards for staking tokens.
Conclusion
Pump.fun’s roadmap aims to balance short-term trading rewards with long-term growth through multi-chain support and governance. Success depends on managing token supply carefully and delivering on expansion plans. Will these efforts attract lasting interest, or will competitors move faster? Watch weekly user activity and cross-chain trading volumes after updates.
What updates are there in the PUMP code base?
Pump.fun has introduced important updates to make trading smoother and to better reward creators.
- Version 2.0 Launch (June 28, 2025) – Faster trades with real-time alerts and easier trading features.
- SDK Incentive Features (July 28, 2025) – Code hints at PUMP token rewards for trading activity.
- Dynamic Fee Model (September 2, 2025) – New tiered fees that increase earnings for creators as their tokens grow.
Deep Dive
1. Version 2.0 Launch (June 28, 2025)
Overview: This update added real-time price alerts, one-click trading, and a "Movers Feed" that highlights trending tokens. It also focused on improving mobile use, cutting trade execution time by about 40%. Backend improvements reduced API delays to under 500 milliseconds.
What this means: This is positive for PUMP because faster trades and live data attract more active traders, which could lead to more platform use. (Source)
2. SDK Incentive Features (July 28, 2025)
Overview: Developers found code in Pump.fun’s SDK that suggests PUMP tokens might be rewarded based on trading volume. The Dumpster DAO SDK update added tools to track trade volumes and set different reward levels, but no official reward program has been announced yet.
What this means: This is neutral for PUMP. While rewards could encourage more trading, there’s uncertainty about how many tokens will be distributed daily (test files mention up to 1 billion PUMP/day), which could reduce token value. (Source)
3. Dynamic Fee Model (September 2, 2025)
Overview: The platform replaced a flat 0.3% fee with a sliding scale: creators earn 0.95% fees for tokens with a market cap under $300,000, decreasing to 0.05% for tokens valued at $20 million. This required updating smart contracts and adding real-time market cap tracking.
What this means: This is good news for PUMP because higher fees for smaller tokens encourage creators to launch quality projects, which supports long-term growth of the platform. (Source)
Conclusion
Pump.fun’s updates show a clear focus on improving user experience and supporting a healthy ecosystem. By speeding up trades and offering better rewards for creators, the platform aims to grow steadily. However, the impact of unconfirmed token reward programs on the overall token economy remains to be seen.