The Pump.fun platform shows significant activity; however, the price of the PUMP token continues to decrease. While the platform earned $10.2 million in fees, the token's price has dropped nearly in half.
High Activity but Falling PUMP Price
From July 14 to July 20, Pump.fun on the Solana platform generated $10.2 million in trading fees. Nevertheless, the price of the PUMP token decreased to $0.003691, significantly lower than its launch price.
Early Token Unlocks Weaken Situation
Since its launch, the PUMP token has dropped by 47.91%. This decline is likely attributed to insider selling, as 18% of the tokens were reserved for private investors and unlocked immediately after the ICO.
Outlook and Future of PUMP
Despite current difficulties, 25% of fees from the Pump.fun DEX go toward token buybacks, which could help increase its scarcity in the future. However, the current situation requires careful market analysis and investor feedback.
In addition to platform activity, the decline in the PUMP token price highlights the need to review token unlock structures and liquidity management to improve market positioning.
