Pump.fun’s Challenges: A Closer Look
The world of cryptocurrency and decentralized finance (DeFi) is always changing. Recently, a platform called Pump.fun has been facing some big problems. In February, there was a 63% drop in the amount of trading happening on Pump.fun. This is part of a bigger trend in the crypto market, where people are less active and less confident.
The Drop in Activity
Pump.fun is a popular place to create new tokens on the Solana network. But lately, there’s been a big drop in the number of new tokens being launched there. In just two weeks in February, the number of new tokens launched fell by 51.1%, from 54,368 to 26,584[2]. This shows that people are less interested in using Pump.fun.
Fewer Tokens Moving to Raydium
Another problem is that fewer tokens launched on Pump.fun are moving to Raydium, a place where people can trade these tokens. In May 2024, only a small fraction of tokens successfully moved to Raydium[2]. This means that people don’t trust Pump.fun to help their tokens after the launch.
Money Problems
Just recently, Pump.fun’s income dropped by a huge 93% compared to the month before[5]. This happened at the same time that the price of Pump.fun’s own token, PUMP, fell from $0.15 to $0.08 in just one day[5]. The number of PUMP tokens being traded also dropped from an average of 10 million per day to just 1.5 million on the day the news came out[5].
What the Numbers Say
Looking at the charts, we can see that the price of PUMP broke through its support level and is now testing the next one at $0.07[5]. A special indicator called MACD shows that the trend is still going down[5]. Also, more PUMP tokens are being sent to exchanges, which means that people are selling them[5].
What This Means for Traders and Investors
All these problems mean that traders and investors might want to be careful with Pump.fun. The drop in trading and the price of PUMP might mean that people are selling, and the RSI shows that PUMP might be a good buy now[5]. But the mood in the market is bad, and people are talking negatively about Pump.fun on social media[5].
Looking Ahead
In the end, Pump.fun’s problems show that the crypto market is having a tough time. To get better, Pump.fun needs to find new ways to make money and regain people’s trust. The future of Pump.fun and other platforms like it depends on how well they can adapt to changes in the market and come up with new ideas.
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Sources:
– KuCoin News
– Blockchain News