Solana's Value Drops 17% as Pumpfun Dumps $8.85M in Tokens

Solana traders are experiencing heightened anxiety as Pumpfun, a popular meme coin launchpad, has dumped a significant amount of SOL tokens. The sale, totaling $8.85 million worth of Solana tokens, has coincided with a broader market downturn, where Solana whales have also been offloading their assets. This has led to a 17% weekly decline in SOL's value, causing a ripple effect across the altcoin market.

The on-chain data reveals that four wallets associated with Pumpfun sold 84,358 SOL tokens, valued at over $8 million. This sale was followed by a transfer of the same amount to the Kraken exchange, which further exacerbated the market's negative sentiment. The immediate impact of this sale was a 4% drop in SOL's price to $103.5, adding to the existing market turmoil. Over the past week, Solana's price has plummeted below key support levels, with a 17% decline this week and a 19% drop over the past 30 days.

The market's downward spiral has been fueled by large-scale movements of SOL tokens to centralized exchanges, indicating potential sales by institutional and retail traders. One whale sold 100,000 SOL tokens worth $10.7 million, while another unstaked 159,028 SOL and transferred 60,000 tokens worth approximately $6.18 million. These massive outflows have had a significant impact on the Solana meme coin market, with prices dropping by 5% and meme coins like TRUMP and BONK falling over 20% in the last seven days.

Despite the current market conditions, some SOL bulls remain optimistic about a potential recovery. They are setting their sights on breaking past the $130 resistance level, with many traders hoping that the approval of a spot Solana ETF in the United States could serve as a catalyst to push SOL's price past $200. This approval is expected to attract institutional momentum, potentially fueling a significant growth trajectory for SOL. Expert trader Ali Martinez has highlighted a bullish plot that could drive over 35% growth, stating that SOL needs to stay above $95 and break $121 to set the stage for a rally toward $147.

The broader digital asset market has also been affected by the recent downturn, with Bitcoin trading at $76,779, down 4% in the last 24 hours. This decline has triggered massive setbacks for altcoins, with Ethereum losing the $1,500 support and dropping 7% in 24 hours. XRP and ADA have also posted similar daily performances, with their prices falling to $1.79 and a 6.7% decline, respectively. These exits have weakened institutional optimism at the start of Q2 2025, adding to the overall market pessimism.