Solana Holds Strong: Pump.fun Sells $6.6M, $47M SOL Left

Solana’s Resilience Despite Pump.fun Pressure

Solana’s price remained strong even in the face of continual selling pressure from Pump.fun, a memecoin launch platform.

Pump.fun Sells $6.6M SOL, Leaves $47M Remaining

The fee account linked to Pump.fun offloaded over $6.6 million worth of Solana (SOL) tokens on October 22, maintaining a substantial SOL holding. According to Lookonchain’s October 22 report:

• The Pump.fun Fee Account recently sold 40,000 SOL ($6.68M).
• Pump.fun has garnered 969,945 SOL ($162M) in total revenue.
• 503,343 SOL ($78.7M) have been sold at an average price of $156.4.

Despite these sales, Solana’s price surged over 9.3% on the weekly chart, with a 0.8% increase to $165.8 within 24 hours by 11:18 am UTC.

Solana’s Price Impact by Whales and Pump.fun

Large crypto-holding entities, known as whales, can significantly influence a cryptocurrency’s price movement due to their substantial market capital. Traders often monitor whale selling behaviors for insights into a coin’s short-term price direction.

Is Pump.fun Influencing Solana’s Price?

The ongoing selling of SOL by Pump.fun’s fee account may be exerting downward pressure on the price of Solana.

In early September, Solana’s price dropped over 12% to $128 shortly after Pump.fun sold $41 million in SOL tokens at an average price of $157.5. With an additional $47.9 million worth of SOL tokens still held by Pump.fun, further selling pressure might be expected.

Memecoin Impact on SOL Price

The current memecoin frenzy on Solana could be influencing SOL’s price dynamics. Popular trader and podcaster Luke Martin noted that the surge in meme token launches on Pump.fun coincided with a stagnation in Solana’s price movement.

Martin highlighted in a September 4 post that the rise in Pump.fun’s meme tokens appeared to halt Solana’s price ascent.

Future Catalysts for Solana

Despite these challenges, anticipation is growing around the potential approval of a Solana-based exchange-traded fund (ETF), which could serve as a significant price catalyst for SOL. Brazil’s first Solana ETF was greenlit on August 7, setting a precedent for similar developments in other global markets.