Altcoins News

Story: Pump.fun Dumps $20M in SOL to Kraken Solana Breakout Momentum Faces

By MikeT

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Pump.fun, the controversial Solana-based token platform, has once again executed a massive selloff, transferring over 132,000 SOL—worth nearly $20.

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This latest transaction, totaling 132,180 SOL, continues a biweekly trend that’s defined Pump.fun’s strategy in 2024.

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While Pump.fun has generated over $400 million in SOL to date, concerns are mounting over its lack of reinvestment into the ecosystem.

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Adding to the skepticism is Pump.fun’s apparent avoidance of on-chain tools that could generate passive income. Unlike many platforms that stake or engage in DeFi strategies, Pump.

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The timing of Pump.fun’s latest selloff has raised particular concern because Solana (SOL) is on the verge of a potential bullish breakout.

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Many analysts believe that if SOL clears this resistance, it could rally toward $190 or higher. However, large-scale selloffs from top dApps like Pump.

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Despite its controversial practices, Pump.fun remains one of Solana’s most dominant applications. The platform’s various wallets still hold over $191 million worth of SOL.

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Pump.fun also plays a major role in supporting Solana’s network infrastructure. It pays out substantial fees to services like the Jupiter aggregator and Solana routers,…

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While the platform has captured the attention of crypto traders and token enthusiasts alike, its actual user success rate remains low.

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Pump.fun was initially celebrated for creating the tokens that challenged VC-dominated narratives in crypto. However, that phase may be ending.

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One of the most telling signs of Pump.fun’s shifting momentum is the declining “graduation rate”—the percentage of tokens that successfully move from the Pump.

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Today, only six Pump.fun tokens have market caps exceeding $100 million, and just one has crossed the $1 billion threshold. While Pump.

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Speculation continues to swirl about the potential start of a native Pump. fun token. If released, such a token could raise up to $1 billion, further concentrating capital around…

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With minimal returns to creators and liquidity providers, many fear that a token start could worsen inequality within the coin space.

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Solana is currently at a critical juncture. Its potential breakout hinges on overcoming resistance and maintaining positive investor sentiment. While Pump.

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