Why did the price of PUMP fall?

Pump.fun (PUMP) dropped 10.46% to $0.00370 in the past 24 hours, underperforming the overall crypto market, which fell 1.65%. Here are the main reasons:

1. Large Token Transfer to Exchanges – A big transfer of 2.5 billion PUMP tokens (worth about $9.19 million) moved to the OKX exchange, suggesting possible upcoming selling pressure (CoinJournal).
2. Losing Market Share – Competitor LetsBonk is leading Solana’s memecoin launchpad space, cutting into Pump.fun’s revenue.
3. Technical Weakness – The price fell below important moving averages ($0.00397 for the 7-day average) with bearish signals from key technical indicators like RSI and MACD.

Deep Dive

1. Whale Activity & Exchange Inflows (Negative Impact)

What happened: On August 18, a large transfer of 2.5 billion PUMP tokens (about $9.19 million) was sent to OKX, a major crypto exchange. Such big moves often mean holders are preparing to sell their tokens.

Why it matters:

• This caused panic selling, pushing the price down to $0.003172 during the day, a 15% drop.
• Traders also reduced their leveraged positions, with open interest dropping 6.4% to $443 million.

What to watch: Keep an eye on how many tokens flow into exchange wallets. More inflows could mean further price drops.

2. Competitive Pressures (Negative Impact)

What happened: LetsBonk.fun has taken a bigger share of the Solana memecoin market, holding 55% compared to Pump.fun’s 19% in July. This is due to better rewards for creators and buybacks of the BONK token.

Why it matters:

• Pump.fun’s daily revenue has fallen sharply, down 95% from $7 million in January to just $307,000 now.
• Less activity on the platform weakens the reasons people value PUMP tokens.

3. Technical Weakness (Negative Impact)

What happened: PUMP’s price dropped below its 7-day and 30-day simple moving averages ($0.00397 and $0.00411 respectively). The Relative Strength Index (RSI) is at 43.53, showing neutral to bearish momentum, and the MACD indicator is negative.

Why it matters:

• The $0.00370 price now acts as resistance. If the price falls below $0.00350, it could test support at $0.00300.
• The low turnover ratio (0.162) means there isn’t much trading volume, which can cause bigger price swings.

Conclusion

The recent drop in PUMP’s price is due to a combination of large token holders selling, losing ground to competitors, and weak technical signals. While the token might see a short-term bounce because it’s oversold, it faces ongoing challenges from competition and legal issues, including a $5.5 billion lawsuit (CryptoTimes).

What to watch: Will PUMP recover above the 7-day moving average at $0.00397 in the next two days, or will LetsBonk’s growing momentum push the price down further?

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What could affect the price of PUMP?

Pump.fun (PUMP) is navigating a challenging mix of legal issues, memecoin market ups and downs, and platform changes.

1. Legal challenges are growing – A $5.5 billion lawsuit accuses Pump.fun of running casino-like operations.
2. Uncertain token rewards – Rumors of a 1 billion PUMP daily reward program could cause too many tokens to flood the market.
3. Altcoin market pressure – Fear and uncertainty in the market are causing investors to pull back from risky assets like memecoins.

In-Depth Look

1. Legal Risks and Reputation Concerns (Negative Impact)

What’s happening: Pump.fun is facing a $5.5 billion class-action lawsuit claiming it operates like an unlicensed casino. Plaintiffs say 80-90% of users lose money (Cointelegraph). The case also includes serious charges under the RICO Act against the founders and partners like Solana Labs.

Why it matters: If the lawsuit succeeds, Pump.fun could be forced to shut down or freeze assets. Similar cases, like BitMEX, saw token prices drop 40-60% during legal battles.

2. Token Rewards and Supply Concerns (Mixed Impact)

What’s happening: Leaked software suggests Pump.fun might start giving out 1 billion PUMP tokens daily as trading rewards to compete with LetsBONK.fun. This would mean releasing about 3% of the total token supply every month (Coincu).

Why it matters: This could cause short-term trading volume spikes, like the 54% increase seen in July on rumors alone. But if rewards continue at this pace, it could lead to token value crashes similar to what happened with STEPN in 2022, which lost 92% of its value after cutting rewards.

3. Memecoin Market Trends (Mostly Negative)

What’s happening: Pump.fun’s price moves closely follow other memecoins like BONK and WIF, with a strong correlation (0.78-0.82). Overall, the market is seeing a 24% drop in open interest for derivatives, and altcoin dominance is at its lowest in over two years (CMC Global Metrics).

Why it matters: Pump.fun’s revenue, which has dropped 75% since January 2025, depends heavily on memecoin hype returning. However, with over $1 trillion in perpetual contract liquidations this year, investor confidence is low.

Conclusion

Pump.fun’s future depends on avoiding major legal setbacks while trying to revive the high-risk trading that once drove its $700 million revenue peak. Technical indicators like RSI at 43 and a bearish MACD suggest the next price support is around $0.0028. The success of Project Ascend’s tiered fee system could help stabilize the platform, but if the memecoin market on Solana continues to struggle, it could drag Pump.fun down too. Keep an eye on daily active wallets—falling below 50,000 could signal serious trouble.

What are people saying about PUMP?

PUMP is caught between hopeful buybacks and big investors selling off. Here’s the quick rundown:

1. Buybacks bring hope – $58 million spent to stabilize the price.
2. Whales are selling – Early investors offloaded $101 million worth of tokens below the initial offering price.
3. Airdrop delays cause frustration – Token price dropped 27% amid uncertainty.

Deep Dive

1. @Lookonchain: $30M Buyback Pushes Against Downtrend

“Pump.fun bought 2.99 billion PUMP tokens at $0.0064 each (87% higher than current price) to reduce supply. But whales sold 29.5 billion PUMP below the initial coin offering (ICO) price, risking a 40% price drop.”
– @Lookonchain (1.2M followers · Aug 8, 2025)
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What this means: The buyback reduces the number of tokens available, which is good for price support. However, since buybacks happened at prices above the current market, it shows weak natural demand. The $0.0034 price level is a key resistance point to watch.

2. @CryptoPatel: Early Investors Sell Off After ICO

“Two investment funds sold $101 million worth of PUMP tokens below the ICO price. About 55% of the supply is still held by investors who bought at higher prices. If the $0.0034 support breaks, the price could fall to $0.0024.”
– @CryptoPatel (320K followers · Aug 8, 2025)
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What this means: Selling pressure is increasing as early investors cut their losses. The ICO price of $0.004 now acts as a psychological barrier for the token’s price.

3. @criptofacil: Airdrop Delays Spark Panic

“PUMP em risco: pode despencar 30%” (PUMP at risk: could plunge 30%).
– @criptofacil (103K followers · Oct 9, 2025)
View original post
What this means: Neutral to bearish outlook. Delays in promised token giveaways (airdrops) have shaken investor confidence. The token has lost half its value since July, reflecting fading excitement around rewards.

Conclusion

The outlook for PUMP is mixed. While buybacks show effort to support the price, large investors selling off and a sharp drop in platform revenue (down 97% since January 2025) raise concerns. The $0.0034 price level is critical—breaking it could signal further declines. Keep an eye on whether the Glass Full Foundation’s funding for Solana-based meme coins can revive interest or if selling pressure will continue.

What is the latest news about PUMP?

Pump.fun is navigating big investor moves and changes in the crypto world while competing with popular meme coins. Here are the latest updates:

1. U.S. Among Top Crypto Holders (November 7, 2025) – Pump.fun ranks 73rd worldwide with $3.6 billion in assets, according to Arkham’s list.
2. Whale Deposits $2.5M USDC (November 5, 2025) – A large investor opened big positions on PUMP through HyperLiquid, signaling potential price swings.
3. Monad Airdrop Rewards Users (November 5, 2025) – PUMP holders can claim new tokens from Monad’s upcoming blockchain launch, increasing Pump.fun’s cross-chain use.

Deep Dive

1. U.S. Among Top Crypto Holders (November 7, 2025)

Overview:
Arkham’s list of the top 100 crypto holders shows the U.S. government in 8th place with $35 billion in seized crypto assets. Pump.fun is ranked 73rd with $3.6 billion, behind big players like BlackRock ($97 billion) and Lido ($59 billion). This shows Pump.fun has good liquidity but is still small compared to major financial institutions.

What this means:
This is neutral news for Pump.fun. Being on a top-100 list shows it’s relevant in the market, but its value is still much smaller than traditional finance giants. The ranking might attract attention from big investors but doesn’t change Pump.fun’s core value right now. (Coinspeaker)

2. Whale Deposits $2.5M USDC (November 5, 2025)

Overview:
An anonymous investor put 2.5 million USDC into HyperLiquid and took leveraged long positions on PUMP, FARTCOIN, and Bitcoin. Although HyperLiquid’s total value locked (TVL) stayed steady, such large bets often lead to price swings, especially for smaller tokens like PUMP, which dropped 11.42% in the last 24 hours.

What this means:
This is a bearish sign in the short term. Big leveraged bets can cause bigger price swings, especially when there aren’t many orders in the market. Traders should watch HyperLiquid’s open interest closely to spot potential price squeezes. (CoinMarketCap)

3. Monad Airdrop Rewards Users (November 5, 2025)

Overview:
Monad is launching a new Layer 1 blockchain and will airdrop tokens to active users of platforms like Pump.fun, Uniswap, and Aave. PUMP holders can claim these tokens starting November 24, 2025. Monad’s network is compatible with Ethereum and promises faster transactions.

What this means:
This is a positive long-term development. Cross-chain rewards can help keep users engaged and bring new investment into Pump.fun’s ecosystem. However, there might be short-term selling pressure if users quickly sell their MON tokens after claiming them. (The Block)

Conclusion

Pump.fun is balancing attention from big investors, price swings caused by large traders, and new opportunities from cross-chain rewards. While its ranking on Arkham’s list confirms its market presence, the recent leveraged bets and upcoming airdrop create short-term risks. The big question is whether Monad’s integration will strengthen Pump.fun’s usefulness or if speculative trading will dominate its future.

What is expected in the development of PUMP?

Pump.fun’s roadmap is focused on growing its ecosystem and rewarding users.

1. EVM Chain Expansion (Q1 2026) – Moving beyond Solana to support Ethereum-compatible blockchains.
2. Governance Activation (Q4 2025) – Allowing PUMP token holders to vote on platform changes.
3. Creator Revenue Boost (Ongoing) – Increasing revenue shares for token creators.
4. Daily Auction Token (DAT) Integration (Under Consideration) – Considering a system to buy back and burn tokens daily.

Deep Dive

1. EVM Chain Expansion (Q1 2026)

Overview: Pump.fun is working on a version compatible with Ethereum Virtual Machine (EVM), which means it will support popular blockchains like Ethereum, Base, and Polygon, in addition to Solana. This move is based on community feedback and code updates suggesting multi-chain support (Dumpster DAO).

What this means: This expansion could bring more users and liquidity to PUMP by making it accessible on multiple blockchains. However, there are risks in execution and competition from similar projects like BONK.fun, which might limit short-term gains.

2. Governance Activation (Q4 2025)

Overview: The team plans to introduce governance features that let PUMP holders vote on important decisions such as fees, tokenomics, and platform upgrades. This aligns with earlier goals to decentralize decision-making (Coinlive).

What this means: Governance can increase the usefulness of PUMP and encourage more users to stake their tokens. On the downside, low voter turnout or disagreements could slow down progress.

3. Creator Revenue Boost (Ongoing)

Overview: Pump.fun has increased the share of PumpSwap fees given to token creators from 30% to 50% to encourage more quality projects. Since this change, there has been a 22% increase in new token launches (Bitget).

What this means: This is generally positive because it motivates creators and boosts platform activity. However, if too many tokens are created, it could put pressure on PUMP’s overall token economy.

4. Daily Auction Token (DAT) Integration (Under Consideration)

Overview: Co-founder Noah mentioned exploring a Daily Auction Token (DAT) system, where PUMP tokens would be automatically bought back and burned every day. This idea gained attention after an interview with Delphi Digital (CryptoStreamHub).

What this means: If implemented, this could reduce the total supply of PUMP over time, potentially increasing its value. But since details are not finalized, this remains speculative.

Conclusion

Pump.fun’s roadmap aims to grow the platform through multi-chain support and stronger community involvement while rewarding creators. However, it faces competition from projects like LetsBONK.fun. The key question is whether expanding beyond Solana will help Pump.fun maintain its place in the memecoin space.

What updates are there in the PUMP code base?

Pump.fun has released important updates to improve its trading tools and security features.

1. Trading Incentives SDK (July 28, 2025) – Added rewards based on trading volume to encourage more activity on the platform.
2. Version 2.0 Launch (June 28, 2025) – Improved mobile trading with real-time alerts and one-click trades.
3. Security Upgrades (June 5, 2025) – Introduced automated scam detection and thorough contract reviews.

Deep Dive

1. Trading Incentives SDK (July 28, 2025)

Overview: Pump.fun’s new software development kit (SDK) now lets projects create custom rewards tied to how much users trade. This aims to bring back more active users.

The update allows projects to give out PUMP tokens as rewards based on trading volume. This helps Pump.fun compete with other platforms like BONK.fun.

What this means: This is positive for PUMP because it could increase trading activity and keep users engaged. However, if too many tokens are given away (for example, 1 billion PUMP tokens per day in testing), it could cause inflation and reduce token value. (Source)

2. Version 2.0 Launch (June 28, 2025)

Overview: This update focused on mobile users by speeding up trade execution and adding a “Movers Feed” that highlights trending tokens.

Technical improvements include real-time price updates and a tap-to-trade feature, which makes trading on the Solana blockchain faster and easier. The app also added a news section that collects trending coin stories.

What this means: This update is neutral for PUMP itself since the token didn’t gain new features directly. But the improvements could attract more traders and content creators to the platform over time. (Source)

3. Security Upgrades (June 5, 2025)

Overview: Pump.fun enhanced its security by improving smart contract audits and adding automated systems to detect scams like rug pulls and malicious bots.

The platform now flags risky tokens by analyzing on-chain behavior, helping reduce fraud. This came after a $5.5 billion lawsuit claimed Pump.fun allowed risky, casino-like trading.

What this means: This is good news for PUMP because better security can restore user trust after legal issues. However, regulatory risks still remain. (Source)

Conclusion

Pump.fun’s updates show a clear focus on improving user experience, offering incentives, and boosting security. While these changes tackle important challenges, the platform’s heavy dependence on speculative trading means PUMP remains vulnerable to the ups and downs common in meme coins. Will upcoming governance features help make PUMP more stable and useful?