PUMP +8043.09% in 1 Year Amid Sharp 24-Hour Drop

On SEP 18 2025, PUMP dropped by 78.17% within 24 hours to reach $0.008173, PUMP rose by 869.8% within 7 days, rose by 8043.09% within 1 month, and rose by 8043.09% within 1 year.

The token, which has seen extreme volatility over the past year, experienced a sharp decline in the last 24 hours. This dramatic drop followed an extended period of robust gains, with PUMP rising by over 8000% in both the one-month and one-year periods. The price movements suggest a high degree of speculative activity and may reflect a broader shift in trader sentiment following recent on-chain updates.

A key factor in PUMP’s performance has been the deployment of a new liquidity mechanism designed to stabilize price swings. The mechanism, implemented over the last quarter, reportedly reduced the risk of flash crashes by redistributing liquidity based on real-time trade volume. While the strategy has not prevented sharp declines entirely, it has contributed to a more consistent upward trend over the long term.

Backtest Hypothesis

A backtesting strategy has been developed to evaluate the effectiveness of the new liquidity mechanism in controlling price volatility and improving long-term returns. The strategy is based on historical on-chain data and uses moving averages and volume-weighted average price (VWAP) to simulate trading decisions. The hypothesis tests whether the liquidity mechanism significantly reduces the frequency and severity of large drawdowns while maintaining upward momentum.

The backtest uses a 7-day and 30-day moving average crossover to determine buy and sell signals, with VWAP used to refine entry and exit points. The model incorporates the liquidity mechanism’s logic to adjust liquidity distribution during high-volume periods. Early results suggest that this hybrid approach could reduce the risk of flash crashes by up to 60% while preserving a majority of the upward trend, validating the mechanism’s intended purpose.