Finance

Pump Fun Trading Landscape Dominated by Bots: Only Two Humans Top $100M Volume

2 days ago
Bitcoin Ethereum News

The meme coin and micro-cap token mania keeps rolling through Solana-based venues like Pump Fun and PumpSwap.

But there’s a slight problem: most of the trading volume is coming from bots. To be a little more precise, 93 of the top 100 wallets by trading volume on Pump Fun are trading for bots. The actual humans using the platforms aren’t even in the competition anymore. These are the key components of the on-chain trading narrative emerging in the Solana ecosystem.

Even with the automated machines, a handful of remarkable human traders remain proof that the game isn’t entirely dominated by bots. Pump Fun may be a significant decentralized speculation hub, with over 3.7 million wallets trading in excess of $1,000, but the data highlights a faceless challenge for any human trader hoping to compete with the bots.

Bots Reign Supreme Among High-Volume Traders

Pump Fun is reshaping the current trading landscape with bots that are steadily scanning, sniping, and trading for the majority of the day.

@Adam_Tehc has analyzed this and brings us the following:

93 out of the top 100 wallets by trading volume are likely automated, based on their stay-up-all-night, round-the-clock activity patterns.

These wallets trade more than 18 hours per day—well beyond any human operator.

There are effects of this bot activity that go beyond the just competitive aspect. They have bearing on liquidity, price discovery, and volatility for tokens that are newly launched—like the Pump Fun tokens, for instance. Bots—the automated kind, as well as the human kind—have the edge when it comes to speed and reaction time. They can front-run, arbitrate, or exit trades faster than you can click buy or sell. And if any trades get executed just as the token price is about to start skyrocketing, those trades can be epic in terms of returns.

Having a significant number of bots raises issues of fairness and access for users on platforms like Pump Fun. Questions are being asked about the health of these platforms, which were initially cherished for their too-open-to-be-true-and-so-we-love-it (meme) aesthetic.

Human Traders in a Bot-Dominated Arena

Even with bots dominating the scene, human traders are still able to make it to the top. For instance, Winford’s two wallets—@Cupseyy and @TheMisterFrog—have more than $100 million in trading volume. They stand out not only for their commanding presence but also for being able to achieve that presence in a market where bots have a clear first-move advantage.

Just behind are 785 human wallets that have passed trading volumes of $10 million and are now in the top 0.005% of all participants. At the next level down are 11,843 wallets that have crossed the $1 million threshold, now representing the top 0.078%. These two sections of the ranks are aglow with human wallets. Absent any large scale human wallet deletions, that’s a good sign for humans and their hard to algorithmically mimic skills.

This circle of high-volume human traders attests to strategy, timing, and sheer persistence in an increasingly bot-centric space.

Millions Join the Frenzy, But Most Stay Small

While the top volume echelon is increasingly inaccessible to casual users, Pump Fun still has millions of active wallets trading smaller amounts. Data shows that 121,755 wallets have traded over $100,000 in volume, making them the top 0.80% of our user base. Meanwhile, 685,160 wallets have crossed the $10,000 threshold, placing them in the top 4.49% of our user base. An impressive 3,725,559 wallets have crossed the $1,000 threshold, putting them in the top 24.4%.

These statistics point to a substantial grassroots foundation on the site. Many novices and small-scale traders engage in the platform’s most basic activity: trading. And while trading by non-professionals might seem a recipe for market inefficiency (if not disaster), what we have here is a liquid ecosystem in which the evenings of speculation, meme-making, and opportune trades keep the pump pumping.

While Pump Fun keeps developing, either the users or the developers may need to deal with a tension that is said not to exist. At issue is whether the platform is accessible—and to whom, in what circumstances, using which tools, and with what security—if bots are not caught and disabled in time. If the developers implement anti-bot measures, the problem of accessibility may become more pronounced than it is now.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/pump-fun-trading-landscape-dominated-by-bots-only-two-humans-top-100m-volume/