PUMP Token Plummets 48% Amid Heavy Selling by Early Holders Despite $10.2M in Weekly Fees

Pump.fun’s PUMP token has experienced a sharp decline of nearly 48% since its launch on July 12, despite the platform generating $10.2 million in weekly fees during the same period, according to data from July 14 to July 20 [1]. This performance placed the platform 17th in the cryptocurrency sector for fee generation, as noted by DeFi researcher @defiIgnas. The disconnect between revenue growth and token price highlights structural challenges within the project’s tokenomics.

The PUMP token’s decline is attributed to heavy selling pressure from large holders. Early private investors, who received 18% of the total supply—double the 15% allocated to public sales—began trading immediately after the initial coin offering. This led to immediate market saturation, with two early investors reportedly selling 25.5 billion tokens to secure $39.6 million in profits [1]. Such activity overwhelmed buyer demand, driving down the token’s value even as platform activity surged.

Pump.fun’s fee structure includes a 25% allocation of decentralized exchange (DEX) fees toward burning PUMP tokens, aiming to reduce supply and support value. However, the pace of these burns has failed to offset the rapid outflow of tokens from large holders. Platform fees were evenly split between the memecoin launchpad and DEX, with consistent trading volumes observed across services [1]. Despite this, investor confidence remains low due to the lack of lock-up mechanisms for early participants, a design choice that critics argue prioritized liquidity for insiders over market stability.

The platform’s ability to generate substantial fees suggests strong user engagement, with both the launchpad and DEX contributing to sustained revenue. Yet, the absence of restrictions on early token sales has eroded trust, particularly as public participants hold a smaller share of tradable supply. Analysts note that the imbalance between institutional access and retail participation often correlates with post-launch price volatility in speculative assets [1].

Pump.fun’s case underscores the challenges of balancing revenue growth with token price stability in the crypto space. While the platform’s services continue to attract activity, the token’s trajectory reflects the risks of concentrated ownership and unregulated selling by early stakeholders.

Source: [1] [Pump.fun Token Faces Price Decline Despite Strong Platform Fees] [https://coinmarketcap.com/community/articles/6882ae052eb2b3609475193c/]