Pump.fun Turns From Solana Booster to Overhang as SOL Sales Continue

Pump.fun, the memecoin launchpad that helped support the Solana ecosystem, is becoming a drag on the network as it sells large amounts of SOL. The selling appears aimed at raising cash as protocol revenue shrinks amid a slowdown in memecoin trading.

Cryptopolitan reported on July 18, citing data from EmberCN, that Pump.fun transferred about 81,712 SOL to Kraken that day. Deposits of tokens to exchanges are generally viewed as a sign of intended selling.

EmberCN estimates that Pump.fun has sold about 4.81 million SOL so far at an average price of $168.3. That is more than the protocol's total revenue of 3.92 million SOL.

The aggressive SOL selling comes against a slump in the memecoin market. DefiLlama data shows Pump.fun's daily fee revenue has dropped about 80% from the start of this year, while its native token, PUMP, has fallen 77.13% from its initial launch level. The move suggests the project is trying to make up for weakness in its own protocol by selling SOL.

Investors worry that Pump.fun's continued conversion of SOL into cash could increase selling pressure across the broader Solana ecosystem. Cryptopolitan said Pump.fun had been one of the biggest fee-generating projects in the Solana ecosystem, and that continued large-scale sales could also weigh on growth across the network.