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- PUMP price rose 13% as derivatives traders added $56M in liquidity.
- Protocol revenue and fees dropped to two-week lows.
- User activity, token creation, and growth metrics continue to weaken.
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Pump.fun [PUMP] logged a sharp 13% price increase over the past day, but on-chain data suggests the rally may not be as solid as it looks. While traders drove fresh inflows into the memecoin, the platform’s revenue and user activity continue to weaken.
Derivatives Traders Drive Rally
The bulk of PUMP’s momentum came from the derivatives market. Open interest rose by $56 million, with funding rates staying positive—signaling a market skew toward long positions. This suggests speculators are betting heavily on further price gains.
Spot buyers also joined in, purchasing nearly $3 million worth of PUMP—their first major accumulation in days. Combined, these inflows helped lift liquidity and price. However, the activity appears more speculative than organic, raising questions about how long the momentum can last.
Revenue and Fees Hit Two-Week Low
Despite the rally, PUMP’s fundamentals tell a different story. Protocol revenue has plunged from $3.38 million to under $1 million, while fees dropped from $8.52 million to $1.82 million. The steep declines highlight weaker demand across Pumpfun and its companion exchange, PumpSwap.
Falling revenue points to fewer active traders on-chain, suggesting that speculation in derivatives markets may not align with real user adoption.
User Growth Slows
Other metrics confirm the slowdown. The number of “Tokens Graduated”—meme tokens reaching $100,000 market cap—collapsed from 286 to just 70. Token minting also fell sharply to 13,700, a monthly low.
Also Read: MemeCore, Pump.fun & Zcash Rally After MicroStrategy Snub
Daily active users on the Pump.fun platform dropped to 85,700, underscoring a broader decline in participation and enthusiasm.
PUMP’s recent rally shows how speculative inflows can temporarily boost price, but shrinking revenue, weak user growth, and fading token creation cast doubt on sustainability. Unless on-chain activity picks up again, the memecoin’s gains could face mounting pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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