What could affect the price of PUMP?

The future price of Pump.fun (PUMP) faces mixed influences from platform changes, market competition, and legal challenges.

1. Fee Model Update – New incentives aimed at traders might increase activity but could upset creators.
2. Rising Competition – LetsBonk.fun controls over half of Solana memecoin launches, putting pressure on PUMP’s market position.
3. Legal Risks – A $5.5 billion lawsuit accuses Pump.fun of unlicensed operations, creating uncertainty.

In-Depth Analysis

1. Fee Model Update (Mixed Effects)

What happened?
On January 10, 2026, Pump.fun changed how it handles creator fees. Instead of the old Dynamic Fees V1 system, it now uses a “market-oriented” model where traders decide how fees are split. Creators can send fees to up to 10 wallets, transfer token ownership, and remove update rights. This change aims to fix past issues where incentives favored easy token creation over active trading.

What this means for PUMP:
On the positive side, rewarding traders more could boost trading volume and increase the usefulness of PUMP tokens if more people get involved. Past fee changes led to a 10% price jump for PUMP. On the downside, creators might be less motivated to launch new tokens, which is a key source of revenue. Also, trust could decline during ownership changes, slowing growth.

2. Market Competition (Negative Impact)

Current situation:
LetsBonk.fun now holds 55.8% of the Solana memecoin launch market, compared to Pump.fun’s 27.4%, based on July 2025 data. LetsBonk.fun earned about $1.04 million daily at its peak, nearly double Pump.fun’s $533,000. This advantage comes from LetsBonk’s integration with Raydium and strong community support from the BONK token.

What this means for PUMP:
Losing market share threatens Pump.fun’s revenue, which directly affects PUMP’s price. Since about 60% of traders on Pump.fun lose money, many might switch to competitors, reducing fee income and the platform’s ability to buy back tokens. PUMP’s price has already dropped 39% over the past 90 days, reflecting these pressures.

3. Legal and Regulatory Risks (Negative Impact)

What’s going on?
In July 2025, a $5.5 billion class-action lawsuit claimed Pump.fun operated like an unlicensed casino, leading to losses for retail investors while making $722 million in revenue. At the same time, new European regulations (MiCA) stopped sales of PUMP tokens to users in Europe, limiting the market.

What this means for PUMP:
Legal troubles could cause investors to sell if fines or restrictions happen. Past examples, like the UK ban in 2024, show that regulations can reduce liquidity and hurt prices. Currently, the crypto Fear & Greed Index is “Neutral,” but negative news could shift sentiment to “Fear,” making things worse.

Conclusion

PUMP’s price will depend on whether the new trader-focused fee system can balance out the challenges from competitors and legal issues. Holders should watch LetsBonk.fun’s market moves and lawsuit updates closely—resolving these could clear uncertainty. The key question: can Pump.fun keep trading volume strong as competition heats up?

What are people saying about PUMP?

The Pump.fun (PUMP) community is divided between hope over token buybacks and concern about large holders selling off. Here’s the latest:

1. Buybacks vs. big sell-offs – A $30 million token buyback is happening, but some early investors are still selling large amounts.
2. Undervalued or overhyped? Some prediction markets see PUMP’s value between $7 billion and $8 billion, while critics worry about weak liquidity.
3. Platform growth – The platform earns over $1 million daily, but user trust is dropping.

Deep Dive

1. @JoestarCrypto: Buybacks hide big sell-offs

“Pump.fun makes $1 million every day, ranking in the top 4 by earnings… but 16% of the token supply has already been bought back. Many dislike $PUMP, but there are some important details.”
– @JoestarCrypto (14K followers · 537K impressions · 2025-12-28 22:19 UTC)
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What this means: The buybacks could reduce the total tokens available, which is good for long-term value. However, early investors from the ICO are selling 29.5 billion tokens (worth $101 million) below the listing price. If the token price falls below $0.0034, it could drop by 40%.

2. @Velvet_Unicorn: Liquidity problems ahead

“The market value is much higher than the actual tokens available for trading… The community is focused on all-time low prices and ongoing lawsuits.”
– @Velvet_Unicorn (9.6K followers · 3.4K impressions · 2025-12-19 04:24 UTC)
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What this means: Short-term outlook is negative. PUMP’s market cap is $1.13 billion, but daily trading volume is only $196 million, showing weak trading activity. If the price falls below $0.00205, panic selling could follow.

3. @FinOwlX: A hidden opportunity?

“Prediction markets value PUMP between $7 billion and $8 billion… it’s undervalued compared to $BONK.”
– @FinOwlX (693 followers · 2.1K impressions · 2025-12-18 23:44 UTC)
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What this means: Neutral stance. While some compare PUMP to Solana’s BONK token, PUMP’s large circulating supply (354 billion tokens, about 35% of total) and no staking options limit its growth potential.

Conclusion

Opinions on Pump.fun (PUMP) are mixed. The token buybacks and strong platform revenue (over $230 million annually) are positive signs, but large holders selling off and legal challenges create uncertainty. Keep an eye on the $0.0034 price level — if the price stays above it, a recovery is possible; if it falls below, further declines may happen. It remains to be seen if the Glass Full Foundation’s efforts to add liquidity can counteract the fading excitement around this memecoin.

What is the latest news about PUMP?

Pump.fun is updating its fee system and facing legal challenges as interest in memecoins cools down. Here are the key points:

1. Fee Model Update (January 11, 2026) – Redesigned creator fees to better reward traders and increase transparency.
2. Legal Challenges Grow (January 10, 2026) – Facing a $5.5 billion lawsuit accusing the platform of market manipulation and causing losses to everyday investors.
3. Market Activity Rises (January 10, 2026) – Despite legal issues, the PUMP token price jumped 9.4%.

In-Depth Look

1. Fee Model Update (January 11, 2026)

What happened: Pump.fun changed how it charges fees to creators. Now, revenue can be shared across up to 10 wallets, ownership can be transferred, and update rights can be revoked. Co-founder Alon Cohen said the old system encouraged creating low-risk tokens rather than supporting active trading, which hurt liquidity. The new model aims to support active community members, called “trenchers,” and strengthen the Solana memecoin market.
Why it matters: This change could make PUMP more useful by fixing governance issues and encouraging more steady trading. However, some remain doubtful that just changing fees will bring back strong market interest (Cointribune).

2. Legal Challenges Grow (January 10, 2026)

What happened: A class-action lawsuit in the U.S. claims Pump.fun coordinated insider trading and manipulated transactions, leading to $4 to $5.5 billion in losses for retail investors. The lawsuit includes 5,000 internal chat messages as evidence. Co-founder Sapijiju denies claims of a $436 million cash-out, calling it “misinformation.”
Why it matters: This lawsuit could hurt PUMP’s reputation, scare off new users, and bring more regulatory attention. These legal problems might overshadow recent improvements to the platform (Cryptonews).

3. Market Activity Rises (January 10, 2026)

What happened: Despite the legal issues, the PUMP token price rose 9.4% to $0.002403, with daily trading volume hitting $2.03 billion. The platform earned $3.87 million in fees, showing strong trader interest. In July 2025, competitor LetsBonk briefly surpassed Pump.fun, but buybacks and “Project Ascend” payouts helped Pump.fun regain its lead.
Why it matters: There’s still short-term optimism around PUMP, but the token is still 55% below its highest price ever. Traders are hopeful the new fee system will help, but the market remains volatile (Coinspeaker).

Conclusion

Pump.fun is working to improve its fee structure while dealing with legal and market challenges. The fee changes aim to better reward traders and stabilize the platform. While Pump.fun remains a leader in Solana’s memecoin space, its future depends on how it handles the lawsuit and whether it can maintain long-term growth. Will 2026 bring renewed confidence or more doubts in this post-hype market?

What is expected in the development of PUMP?

Pump.fun’s 2026 roadmap centers on updating fees, rewarding traders, and expanding its platform to new blockchain networks.

1. Dynamic Fee Overhaul (2026) – Changing fees to be driven by traders, aiming to improve liquidity.
2. PUMP Incentive Program (Q1 2026) – Introducing possible token rewards for traders with high volume.
3. EVM Chain Expansion (Mid-2026) – Planning to support Ethereum-compatible blockchains.

Deep Dive

1. Dynamic Fee Overhaul (2026)

Overview: Pump.fun is moving away from its current “Dynamic Fees V1” system, which sets fees based on token creators, to a new model where fees respond to trader demand. This change is designed to reduce low-quality token launches and focus on deeper liquidity, meaning more stable and active trading (TradingView).
What this means: In the short term, this update is neutral for PUMP since it mainly addresses risks from poor token launches. Over time, a healthier platform could increase the demand for PUMP tokens.

2. PUMP Incentive Program (Q1 2026)

Overview: Recent updates to Pump.fun’s software hint at a rewards program that could give PUMP tokens to traders based on their trading volume. While not officially confirmed, the community believes this aims to help Pump.fun regain users lost to competitors like BONK.fun (CoinCu).
What this means: If launched, this could encourage more trading and increase demand for PUMP. However, if too many tokens are given out (for example, test files mention up to 1 billion PUMP tokens per day), it could reduce the token’s value through dilution.

3. EVM Chain Expansion (Mid-2026)

Overview: Pump.fun is exploring expanding beyond the Solana blockchain to include Ethereum Virtual Machine (EVM) compatible chains. This move would help attract users from Ethereum-based networks and respond to competition from platforms like Bonk.fun (CryptoSlate).
What this means: This expansion could be positive by bringing in new users, but there are risks such as delays in technical development or slower adoption than expected.

Conclusion

Pump.fun’s 2026 plan aims to create a more sustainable platform through fee reforms while driving growth with trader incentives and cross-chain support. The main challenges include managing token supply carefully and competing with rivals like Bonk.fun. Will these trader-focused changes help reverse PUMP’s recent 48% drop over 90 days? Keep an eye on trading volumes after the fee updates and the launch of EVM testnets.

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What updates are there in the PUMP code base?

Pump.fun is changing its fee system to let traders have more control, aiming to create a fairer and more balanced platform.

1. Fee Model Update (January 10, 2026) – Traders now decide how fees are shared, replacing a system that favored easy, low-risk token launches.
2. Project Ascend (September 3, 2025) – Introduced tiered fees to support serious token projects and speed up fee processing.

In-Depth Look

1. Fee Model Update (January 10, 2026)

What happened: Pump.fun moved away from its old Dynamic Fees V1 system to a new model where traders, not token creators, decide how fees are distributed. The previous system encouraged launching tokens with little effort and low risk, but didn’t support the high-risk trading needed to keep the market active and liquid.
Why it matters: This change is positive for PUMP because it focuses on traders who add real value by increasing market activity. It could lead to more transactions and better use of the token. The new system also makes fee claims simpler and more transparent, which might attract more users. However, its success depends on how many traders adopt the new model. (Source)

2. Project Ascend (September 3, 2025)

What happened: This update introduced tiered "Creator Fees V1," meaning tokens with smaller market caps pay higher fees. This discourages risky projects that might disappear suddenly (known as rug pulls) and rewards more serious token creators. It also made fee processing 10 times faster.
Why it matters: This was a neutral change for PUMP. It improved the platform’s reputation and helped creators earn more, but it didn’t address the needs of traders. Faster fee processing made the platform easier to use, but the overall impact was limited because of later changes. (Source)

Conclusion

Pump.fun’s shift to a trader-focused fee system shows the platform is evolving to balance innovation from creators with the need for active trading and liquidity. The big question is whether giving traders more control will lead to steady growth in trading volume over time.

Why did the price of PUMP go up?

Pump.fun (PUMP) increased by 5.92% in the last 24 hours, outperforming the overall crypto market, which gained just 0.45%. This continues a weekly upward trend of 7.30%, although the token is still down 9.44% over the past month. The main reasons behind this growth are:

1. Fee Model Update: The platform changed how it charges fees to encourage more trading.
2. Technical Breakout: The price moved above important resistance levels, showing strong buying momentum.
3. Higher Trading Volume: Trading activity jumped 40% above the average of the past 30 days.

Deep Dive

1. Fee Model Update (Positive Impact)

What happened: On January 10, Pump.fun revamped its fee system. Now, creators can split their earnings across multiple wallets and transfer token ownership more easily. This fixes earlier issues where the system favored creating low-risk tokens instead of encouraging active trading.
Why it matters: By rewarding traders and liquidity providers more fairly, the platform hopes to boost trading activity and increase demand for PUMP tokens. Co-founder Alon Cohen described traders as the platform’s “lifeblood,” suggesting this change could attract more speculative investors (CoinMarketCap).

2. Technical Breakout (Positive Impact)

What happened: PUMP’s price rose above its 7-day and 30-day Simple Moving Averages (SMA), which are $0.00238 and $0.00215 respectively. The Relative Strength Index (RSI) climbed to 52.09, indicating a neutral to slightly bullish trend. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, signaling increased buying pressure.
Why it matters: Breaking these technical levels often triggers automated and momentum-driven buying. The strong trading volume of $139.6 million over 24 hours confirms this breakout is supported by real market activity.

3. Volume & Sentiment Shift (Positive Impact)

What happened: Trading volume rose 19% above the 30-day average, and social media mentions of PUMP increased by 30% after the fee update announcement.
Why it matters: The fee changes sparked renewed interest, turning previously inactive investors into active traders. The high turnover, which is 15.8% of the market cap, shows strong liquidity during this price rally.

Conclusion

Pump.fun’s recent price jump is driven by a combination of improved incentives for traders and positive technical signals. However, the token still faces resistance at $0.00262.
What to watch: Whether daily trading volume stays above $150 million, which would support the idea that the fee changes are leading to sustained growth.