Solana price has declined by 1.56% in the last 24 hours after the Pump fun Fee Account sold 40,000 SOL worth $6.68 million. The sale happened only five hours ago and has added to the market fears on the further price movement of Solana.
Currently, the social platform has recorded 969,945 SOL ($162 million) in total revenue from selling 503,343 SOL at an average price of $156.40, which equals to $78.70 million.
Pump Fun Sells Another 40,000 SOL
Pump fun, a Solana-based meme coin launchpad, has been actively selling large amounts of SOL in recent weeks. The 40,000 SOL sold recently adds to its ongoing trend, fueling speculation about its impact on the broader Solana market. The total amount of SOL sold by Pump fun is now over 500,000 tokens.
With the platform’s continued liquidation of its SOL holdings, traders fears are if these sales are contributing to short-term price pressure.
The platform has also been noted for its fee-generation capabilities, having raised more than $140 million since the beginning of the year. It has been involved in the generation of more than 2.5 million Solana tokens and has been instrumental in many of this year’s meme coin trends. However, owing to bearish pressure on Solana’s price, there are questions regarding the time frame of these sales and how they may affect the market.
New Developments at Pump fun
During the week that Pump fun had one of its most successful weeks, it made new announcements during a Twitter Spaces event, including the release of a new trading terminal known as Pump Advanced.
This new tool aims at challenging other platforms such as Photon and Bull X and it will charge 0% fees for the first month as a way of attracting traders.
At the same event co-founder Sapijiju mentioned possibility of launching a new token and an airdrop. In terms of time frame, Sapijiju said, “We are definitely planning on launching a token at some point in the future” and pointed out that the airdrop could be more generous than those offered by competitors.
Solana Supply Increases Amid Scheduled Unlocks
Solana is scheduled to unlock an additional 524,030 SOL tokens this week, worth approximately $88.46 million. This comes after a previous unlock in early October where $81 million worth of SOL was released into circulation. In this period, SOL price went down by 6% but quickly reversed the trend shortly after.
The market is currently waiting to see if this is going to be the case and if the new supply will put more short-term pressure on the price of Solana. Analyst have projected that Solana might face price pressure in the short-term but the asset could bounce back in the weeks following due to high demand from traders.
In the past, SOL has been able to accommodate more supply that comes into the market, but these back-to-back unlocks make it difficult to predict short-term price fluctuations.
However, despite Pump fun’s recent SOL sales and future token unlocks, analysts continue to remain optimistic about the Solana network and its potential. As per CoinGape analysis, a cup-and-handle pattern has been observed on the weekly chart of Solana, and the price could rise to $4,500, a 2600% increase.
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