Pump.fun Becomes Solana Overhang as SOL Selling Continues

Pump.fun, the memecoin launchpad that helped support the Solana ecosystem, is emerging as a drag on the broader network after selling large amounts of Solana tokens. The project appears to be raising cash through SOL sales 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. Token deposits to exchanges are typically interpreted as a sign of planned sales.

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

Market participants 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 on Solana, and that sustained large-scale sales could also affect growth across the ecosystem.