Pump.fun, a platform for launching meme coins within the Solana ecosystem, recently capitalized on favorable market conditions by selling 40,000 SOL tokens.
This follows a series of record-breaking launches and heightened activity on the Solana network influenced by Pump.fun. Amid its ongoing sales, the platform now ranks among the top contributors to SOL trading volumes.
Pump.fun Continued Sale of SOL Amid Increased Earnings
Since its inception, Pump.fun has earned approximately 969,945 SOL in total fees valued at approximately $162 million. Around 56% of these earnings have been sold, indicating an ongoing strategy to periodically realize profits.
In the latest sale, the average price of the liquidated 40,000 SOL tokens was $156.40 per token, reflecting Pump.fun’s skillful timing in maximizing returns amid Solana’s ongoing uptrend. These transactions were carried out via the Kraken exchange.
In September, Pump.fun made a notable transfer of 9,940 SOL, equivalent to $1.33 million, to Kraken, increasing its sales tally to 274,311 SOL at the time. This sale was part of the total fee earnings of 712,797 SOL ($95.87 million) by mid-September, highlighting the protocol’s strong revenue generation from network activities.
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Scheduled Token Releases vs. Price
Alongside Pump.fun’s strategic sales, Solana’s scheduled token releases also influence SOL’s trading environment. This week, 524,030 SOL tokens, worth approximately $88.46 million, will enter circulation.
Earlier this month, between October 1 and 7, a similar release of $81 million in SOL occurred, which some analysts believe contributed to SOL’s price dip during that period. However, market dynamics allowed for a recovery in the following week. While there is speculation that the upcoming token release may exert similar downward pressure, historical trends suggest potential stabilization soon after.
At press time, Solana is trading at $168.94, up by 4% over the past day.
Whales Continue Selling SOL
The whale’s trading pattern appears consistent. It often involves purchases at lower levels followed by sales during price surges.
Following this latest transaction, the whale retains a holding of 20,000 SOL, equivalent to $3.33 million. Cumulatively, the whale’s profits from these trades have surpassed $2.5 million, aligning with similar past strategies that aim to capitalize on market peaks.
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Source: https://thecryptobasic.com/2024/10/22/will-solana-crash-again-as-pump-fun-liquidates-40000-sol/?utm_source=rss&utm_medium=rss&utm_campaign=will-solana-crash-again-as-pump-fun-liquidates-40000-sol