Why did the price of PUMP go up?
Pump.fun (PUMP) increased by 13.04% in the last 24 hours, outperforming its 7-day gain of 26.39% and 30-day gain of 17.23%. This growth matches the overall crypto market’s 3.73% rise and the positive momentum seen in altcoins. Key reasons behind this include:
- Fee Model Update (Positive Impact) – New incentives for traders have boosted platform activity.
- Solana Memecoin Rally (Mixed Impact) – PUMP benefits from Solana’s ecosystem growth but faces strong competition.
- Technical Breakout (Positive Signal) – Price broke important resistance levels, supported by momentum indicators.
Deep Dive
1. Fee Structure Overhaul (Positive Impact)
What happened: On January 10, Pump.fun changed its fee system to reward traders and liquidity providers instead of creators. Previously, 98% of revenue was used for buybacks, which limited growth (Bitrue).
Why it matters: This change links PUMP’s value directly to trading activity, encouraging more volume. Since mid-2025, daily buybacks have reduced the supply by 17.28%, creating scarcity that can support price increases.
What to watch: Continued daily trading volume above $330 million will be important to confirm this new model is working.
2. Solana Memecoin Momentum (Mixed Impact)
What happened: Tokens on the Solana blockchain, like PEPE (+14%) and PUMP, have benefited from a 6% weekly increase in total value locked (TVL) on Solana, now at $4.1 billion (CoinMarketCap News).
Why it matters: While PUMP is riding the wave of Solana’s growth, competitors like LetsBonk.fun are gaining ground, with trading volumes twice as high as Pump.fun’s in July 2025.
3. Technical Breakout (Positive Signal)
What happened: PUMP’s price moved above its 50-day exponential moving average (EMA) at $0.00235 and broke through resistance at $0.0028. The 7-day Relative Strength Index (RSI) is at 69.96, indicating strong momentum but not yet overbought.
Why it matters: Breaking the Fibonacci 61.8% level at $0.00209 suggests PUMP could retest its all-time high of $0.0121 from July 2025, especially if it holds above $0.0032.
Conclusion
PUMP’s recent price jump is driven by platform improvements, Solana’s ecosystem strength, and positive technical signals. However, its large circulating supply (354 billion out of 1 trillion total) and dependence on speculative trading mean investors should be cautious.
Key point to watch: A $148 million stablecoin transfer to Kraken (Crypto.News) could indicate either strategic buybacks or insiders taking profits.
What could affect the price of PUMP?
PUMP's price is balancing between upcoming platform improvements and regulatory challenges.
- Fee Changes: New rewards for traders might increase trading activity and token burning.
- Competition & Solana's Status: Rivalry with LetsBonk.fun and Solana’s network health are important factors.
- Whale Activity: Big investors moving funds in and out create price swings.
Deep Dive
1. Fee Model Shift (Positive Outlook)
Overview: In January 2026, Pump.fun plans to update its fee system. Instead of charging creators fees that favored low-risk token launches, the new model rewards traders directly. This change aims to encourage more trading rather than just launching tokens. Creators will also be able to split fees among up to 10 wallets, making the process more transparent.
(Pump.fun announcement)
What this means: More active traders could lead to higher trading volume and more fees collected. Since 98% of these fees are used to buy back and burn PUMP tokens daily, this could reduce the total supply faster (already down by 17.28%) and help support the token’s price.
2. Market Share Battle (Mixed Impact)
Overview: LetsBonk.fun, supported by the BONK token, now controls 55.8% of Solana meme token launches, compared to Pump.fun’s 27.4%. At the same time, Solana’s network upgrades and Ethereum’s growing ETF investments might either bring more capital to PUMP or divert it elsewhere.
(Competition data)
What this means: If Solana’s activity increases, Pump.fun could benefit as a leading launch platform. However, losing users to LetsBonk.fun could reduce revenue and the amount of PUMP tokens bought back. Keeping an eye on Solana’s total value locked (TVL) and the number of daily token launches on Pump.fun can provide early signs of these trends.
3. Whale Volatility (Potential Risk)
Overview: On January 13, a wallet linked to Pump.fun moved $148 million in stablecoins to the Kraken exchange, part of a larger $753 million transfer pattern since November 2025. At the same time, data shows some large investors are buying more PUMP tokens (for example, 2.99 billion PUMP bought for $30.59 million on January 14).
(Kraken transfer)
What this means: Big transfers to exchanges often signal upcoming sell-offs, which could push prices down. But if buying by large holders continues, it might balance out selling pressure. Watching exchange inflows and outflows, along with whale wallet activity, is important to understand potential price moves.
Conclusion
PUMP’s near-term future depends on whether the new fee system can increase trading volume enough to offset price swings caused by large investors. Meanwhile, Solana’s network performance could either boost or limit growth. For investors, the key question is whether buybacks and trader rewards will outweigh regulatory challenges and competition.
What event might change big investors’ minds from selling to buying?
What are people saying about PUMP?
The community around Pump.fun (PUMP) is divided between strong optimism and cautious concern. Traders are watching closely for buybacks and potential legal issues. Here’s a quick summary of the conversation:
- Technical traders see possible price reversals but warn that liquidity is fragile.
- Prediction markets suggest an 8x price increase despite ongoing legal challenges.
- Large investors (whales) are buying more as platform revenue supports buybacks.
Deep Dive
1. @Finora_EN: Short-term bounce but long-term risks are mixed
“Price may dip below $0.001811 before reversing”
– @Finora_EN (6.4K followers · 73.8K impressions · 2026-01-13 16:50 UTC)
View original post
What this means: The price of PUMP is holding above an important support level at $0.0023, but if it breaks below that, it could drop another 15%. Technical indicators suggest the price could be volatile around key liquidity points.
2. @Velvet_Unicorn: Legal risks overshadow buybacks — bearish outlook
“Market cap vs liquidity shows fragile financials… legal scrutiny increases long-term risks”
– @VU_virtuals (9.6K followers · 29.9K impressions · 2025-12-23 03:31 UTC)
View original post
What this means: There’s growing bearish pressure because PUMP’s market cap is over $1 billion, but daily trading volume is only $330 million, indicating thin liquidity. Plus, regulatory concerns around memecoin launches add to the risks.
3. @FinOwlX: Undervalued compared to prediction markets — bullish outlook
“Prediction markets value PUMP at $7B-$8B… watch for a surge”
– @FinOwlX (691 followers · 2.1K impressions · 2025-12-18 23:44 UTC)
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What this means: The bullish case is based on PUMP potentially dominating meme platforms like BONK did. Prediction markets suggest a valuation of $7 to $8 billion, which is much higher than the current $1 billion market cap, signaling room for growth.
Conclusion
Opinions on Pump.fun (PUMP) are mixed. Technical traders see opportunities for price swings, while fundamental analysis is split between aggressive buybacks (17% of supply removed) and concerns about the platform’s long-term sustainability. Keep an eye on the $0.0034 resistance level: a daily close above this could confirm bullish momentum, while a rejection might indicate large investors are selling. The key question remains: does burning 98% of revenue offset the fading hype around memecoins?
What is the latest news about PUMP?
Pump.fun (PUMP) is riding the wave of Solana’s memecoin popularity, but it’s facing legal challenges and market ups and downs. Here’s the latest:
- $148M Stablecoin Transfer to Kraken (January 13, 2026) – Large treasury moves spark questions about transparency.
- Class-Action Lawsuit Filed (January 14, 2026) – Accused of running an “unlicensed casino.”
- 12% Price Jump (January 14, 2026) – Outperforms other altcoins during a market rally.
Deep Dive
1. $148M Stablecoin Transfer to Kraken (January 13, 2026)
Overview:
A wallet linked to Pump.fun moved $148 million in stablecoins (USDC and USDT) to the Kraken exchange. This is part of a series of large transfers totaling $753 million since November 2025. These funds reportedly come from Pump.fun’s 2025 initial coin offering (ICO). The platform says these transfers are normal treasury activities for managing funds and operations, but some are concerned it could be a sign of cashing out.
What this means:
In the short term, this doesn’t necessarily hurt or help PUMP, but it raises questions about how the project is managed. Ongoing large transfers might show the team is managing risks or liquidity, but lack of clear communication could hurt trust. (CoinMarketCap)
2. “Unlicensed Casino” Lawsuit (January 14, 2026)
Overview:
A class-action lawsuit filed in New York claims Pump.fun operates a $5.5 billion “rigged slot machine” system. The suit alleges that retail investors are being exploited through memecoin pump-and-dump schemes. Solana Labs and Jito Labs are also named as co-defendants, accused of supporting this operation.
What this means:
This is a negative development for PUMP because of the legal and reputational risks involved. If the lawsuit drags on, it could discourage users from participating. However, Solana’s overall growing adoption might help limit the damage. (Cointelegraph)
3. Altcoin Rally Participation (January 14, 2026)
Overview:
PUMP’s price jumped 12% as the crypto market gained $110 billion, led by Bitcoin moving toward $96,500. PUMP outperformed other altcoins like PEPE and ICP, both up 14%, likely benefiting from Solana’s strong position in memecoin trading.
What this means:
This is a positive sign in the short term, showing PUMP’s close connection to Solana’s ecosystem. However, trading volume is high—31.6% of its market cap in 24 hours—indicating the price could be volatile. (Cryptopotato)
Conclusion
Pump.fun (PUMP) is balancing treasury scrutiny, legal challenges, and market volatility. While its role in Solana’s memecoin scene offers growth potential, questions about regulation and governance remain. Will Pump.fun’s buyback-driven token model be enough to manage these risks? Keep an eye on trading volumes and lawsuit updates.
What is expected in the development of PUMP?
Pump.fun is focusing on improving how creators earn and expanding its tools for users in 2026.
- Fee Model Overhaul (2026) – Changing creator fees to better support active trading and fair token launches.
- EVM Chain Expansion (2026) – Planning to support Ethereum-compatible blockchains to stay competitive.
- Governance & Revenue Sharing (2026) – Introducing token-holder voting and sharing platform revenue with creators.
Deep Dive
1. Fee Model Overhaul (2026)
Overview: Pump.fun is updating its Dynamic Fees system because the old model encouraged creating low-risk tokens instead of promoting active trading. The new system will let creators split fees among up to 10 wallets after launch and remove their ability to change fees later. This aims to create a better balance between launching tokens and maintaining healthy trading activity (TradingView News).
What this means: This is good news for Pump.fun (PUMP) because better fee rules could attract more serious projects and traders, increasing platform use. But there’s a risk if users don’t adopt the changes quickly.
2. EVM Chain Expansion (2026)
Overview: Pump.fun is looking to expand to Ethereum Virtual Machine (EVM) compatible blockchains like Ethereum and Polygon. This move is to compete with rivals like Bonk.fun and allow token launches on multiple popular networks (CryptoSlate).
What this means: This could be positive because supporting multiple blockchains can bring in more users. However, it depends on how well the technical rollout goes and how strong the competition is.
3. Governance & Revenue Sharing (2026)
Overview: Pump.fun plans to let PUMP token holders vote on platform decisions and share half of the revenue from PumpSwap with creators. They are building a governance system to support this, which could include direct profit sharing from the protocol (CoinLive).
What this means: If done well, this could increase demand for PUMP tokens and keep holders engaged. However, there might be legal challenges related to sharing profits.
Conclusion
Pump.fun’s 2026 plans focus on making the platform more sustainable by improving fees, expanding to new blockchains, and involving the community in decisions. The key will be balancing innovation with competition. These trader-focused updates might help reverse PUMP’s recent 31% price drop over the last 90 days.
What updates are there in the PUMP code base?
Pump.fun’s latest updates focus on improving how fees are shared and offering better rewards for creators and traders to increase platform activity.
- Fee Sharing Overhaul (January 10, 2026) – Redesigned fee distribution to benefit traders and communities more.
- Volume Incentives Framework (July 28, 2025) – Software updates that allow PUMP token rewards for active traders.
Deep Dive
1. Fee Sharing Overhaul (January 10, 2026)
Overview: Pump.fun changed its fee system to put traders and communities first, rather than just token creators. Now, token creators can split fees among up to 10 different wallets, such as team funds or moderators. The update also adds tools to transfer coin ownership more easily.
What this means: This is a positive move for PUMP because it helps fix trust issues from the past, promotes fairer sharing of revenue, and could attract more creators and traders to the platform. Making fee claims and ownership transfers simpler also improves the overall user experience.
(Source)
2. Volume Incentives Framework (July 28, 2025)
Overview: Updates to the software development kit (SDK) now track trading volume and allow PUMP token rewards to be given out. This lets the platform create custom reward programs to encourage active trading.
What this means: This update is neutral for PUMP. While it could increase trading activity, the potential size of rewards (like 1 billion PUMP tokens per day in tests) could cause inflation if not managed carefully. It encourages engagement but needs to be implemented thoughtfully.
(Source)
Conclusion
Pump.fun’s updates aim to grow the platform sustainably by making fee sharing fairer and rewarding traders more effectively. The big question is whether these changes will help Pump.fun bounce back in the competitive memecoin market.