Solana News Today: Three Arrows Capital Founder Zhu Su Highlights Solana's 106 Million Monthly Revenue

Zhu Su, the founder of the now-defunct cryptocurrency firm Three Arrows Capital (3AC), recently shared his insights on Solana (SOL) through a post on his social media account. Despite being a fugitive wanted by the US authorities, Su's comments have garnered significant attention within the crypto community. The collapse of 3AC had previously triggered a substantial downturn in the cryptocurrency market, making Su's current views on SOL particularly noteworthy.

Su highlighted that the token generation efficiency (TGE) of PumpFun’s PUMP token was a pivotal factor in accelerating the rise of Solana's price. He explained that market dynamics and investor behavior both contributed to this upward trend. According to Su, the Pump.fun platform's lack of a large amount of SOL does not exert downward pressure on the price, which alleviates investor concerns about the risk of selling. This structure, he noted, is akin to a classic consumer business model and does not directly cause a decrease in the price of SOL.

Su also addressed a common misperception in the market. He clarified that users buy SOL with US dollars, trade on the platform, pay transaction fees with SOL, and Pump.fun then converts these SOLs into dollars. This process, he argued, does not directly impact the price of SOL. Additionally, Su pointed out that the financial activity generated by PumpFun within the Solana ecosystem is significant. For instance, the platform reported a monthly revenue of $106 million in November, which Su believes demonstrates Solana's strong performance and attracts interest from both developers and investors.

This financial activity, according to Su, not only fuels a surge in Solana-based projects but also drives a renewed appreciation of SOL as an investment vehicle. He noted that investors who participated in PumpFun's initial coin offering are redirecting their profits back into SOL, further increasing demand within the ecosystem. This, in turn, contributes to the upward pressure on SOL's price.

Su's remarks come at a time when the cryptocurrency market is still recovering from the aftermath of 3AC's collapse. His insights provide a unique perspective on the factors driving the price of Solana, offering valuable information for investors and analysts alike. Despite his controversial past, Su's analysis of the Solana ecosystem and the role of platforms like PumpFun in driving its growth is a critical contribution to the ongoing discussion about the future of cryptocurrencies.