Solana Price Drops 11% Amid Pump.fun Sell-Off

In the second quarter of this year, the price of Solana experienced a significant surge, rising from $96 in April to $187 by the third week of May, marking a 93.5% gain over 46 days. However, by the end of May, Solana’s gains had dropped by over 20%, retesting a key level at $144 by mid-June.

In June, optimism grew, suggesting a potential rebound. Yet, uncertainty loomed. A negative development occurred that has shattered investor confidence in the short term. A popular Solana-based memecoin launchpad, Pump.fun, sold 4.1 million Solana from its holdings, which alarmed investors.

Pump.fun is a launchpad for memes that gained extensive attention for driving the Solana memecoin wave. However, it has been criticized for enabling pump-and-dump schemes and quick-turnaround token launches. The official accounts were suspended for Pump.fun and its founder, leaving significant room for speculation within the crypto community.

Some users even relate to ongoing investigations or potential legal concerns. Moreover, in recent data, Pump.fun has been selling off its SOL holdings from May 19 onwards. It has dumped approximately 4.1 million SOL crypto, estimated at $741 million, with an average selling price of around $180 per token. The most significant transfer was made to Kraken of 3.84 Million SOL cryptos, while another stash worth $41.64 million was sold for USDC stablecoin.

These ongoing pessimistic events pull the Solana price down alongside investors’ confidence. Solana has seen institutional interest despite the price declines since mid-May. However, if pump.fun is down, it will dampen Solana’s price and market cap tremendously. Once a significant drop comes, then a domino effect could extend the fall significantly. Also, A decline in the Trust of investors and experts would reduce the odds of the SOL ETF being approved.

During this week, Solana’s price dropped 11%, and an intraday fall of nearly 5% has also contributed today. At the same time, it exchanges hands at $150.42 with a market cap of 79.42 Billion. If demand weakens and profit-taking resumes, the Solana coin price risks resuming its downtrend, and failing to hold above $144 would lead to $120.

According to the analyst's forecast, the altcoin might chug up to a maximum of $400 by 2025. As per the analyst's forecast, with a potential surge, the price of SOL could reach a maximum of $1,351 by 2030. As per the latest SOL price analysis, the Solana could reach a maximum price of $11,698 by 2040. By 2050, a single Solana price could go as high as $72,459.