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PUMP sees fresh inflows as smart money returns

12h ago
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Smart money is returning to Pump.fun, buying PUMP tokens near its lows. The inflows follow a recovery of meme activity, as Pump.fun is still the top platform for creating memecoins.

Pump.fun’s native token PUMP is attracting smart money inflows, as the price bounced off its recent lows. Despite the end of the altcoin market, specific assets are still recovering. 

PUMP still traded at $0.004, close to its initial sale price. The token bounced from last week’s lows of $0.0033, recovering to the higher range for the past week. PUMP is still up by 25% in the past month, despite the short-term volatile trading. 

The recent focus on BTC has shifted the spotlight from memes. Based on Messari research, overall mindshare for PUMP is down by over 47%. A lower retail interest and slowing mindshare may turn into a moment of silent accumulation, waiting for a comeback for Pump.fun. 

Smart money added 17% PUMP to their balances

Smart money has also increased its PUMP balance by over 17%, based on Nansen research. The token is still carefully traded, as altcoin markets remain fragile. However, PUMP is considered a bet on a long-term trend of rewarding creators and moving traditional creators to Solana.

PUMP is also highly active on Hyperliquid, where 26 whales are making sizable bets on the asset’s next moves. Over 60% of PUMP whales are going long, compared to around 65% on centralized exchanges. The token is still seen as risky, as Hyperliquid whales usually take more aggressive short positions. 

PUMP open interest also recovered to $346M, though still down from a recent peak above $365M. The token still has $1.3B market cap, which is considered relatively low for one of the leading token platforms. 

During the lifetime of the PUMP token, the Pump.fun team bought up over 9% of the total supply. However, since September, PUMP repurchases slowed down, leading to the relative price weakness.

Pump.fun takes the lead on Solana

Meme creation still continues on Solana, despite the more difficult time in reaching high valuations. Pump.fun is back to launching over 95% of tokens on Solana. The meme platform wars have ended, and even LetsBonk.fun is showing minimal activity.

The platform is still holding its position against Four.meme, which generated a highly active Binance meme season. Four.meme still bet on curated tokens, relying on several strong rallies instead of trading in the ‘trenches’.

Smart money is returning to PUMP.
Pump.fun remained the leader for token generation on Solana, displacing previous contenders during the meme token wars. | Source: Dune Analytics.

Pump.fun still holds the record with over 13M lifetime tokens, while Four.meme still has around 589K tokens. The platform still had a few days with 15K to 59K new tokens created. Pump.fun fell to a baseline of around 13K daily tokens generated. As usual, only a small fraction of those tokens move onto a DEX. 

Despite this, Pump.fun still generates around $2.9M in daily fees, based on new token generation and legacy trading on its own DEX, PumpSwap. 

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12h ago
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