The Solana community has been working tirelessly over the past several months, conducting a seemingly non-stop parade of updates and announcements that have resulted in a substantial increase of developer engagement, user adoption, and new applications on the chain. Still, there’s a nagging worry that observers can’t help but notice: consistent and heavy $SOL selling from the PumpFun wallet, the wallet of Solana’s much-buzzed-about DEX that recently took the #1 spot on Solana for trading volume after launching AMM swaps. Over the last 11 hours, PumpFun’s associated wallet sent about 95,934 SOL, valued at roughly $13.33 million, to centralized exchange Kraken. This transfer forms part of a consistent and curious year-long trend that has seen PumpFun’s total outgoing SOL ramping up to just under 100,000 and prompting raised eyebrows among traders and analysts. PumpFun: The Silent SOL Killer? Another Massive Dump Hits the Market Is PumpFun secretly cursing #Solana 's price action? Around 11 hours ago, the wallet linked to @pumpdotfun deposited another 95,934 $SOL (~$13.33M) to Kraken, continuing a relentless selling streak. pic.twitter.com/iE3PPbsKci — EyeOnChain (@EyeOnChain) April 22, 2025 A Year of Relentless Offloading As stated by the blockchain analytics platform Ember CN, the wallet belonging to PumpFun, which is believed to have been established for the sole purpose of carrying out a pump-and-dump scheme, accumulates SOL through transaction fee income over a one- to two-week period. It then sends that SOL to the cryptocurrency exchange Kraken, after which the SOL is sold in an apparently methodical manner. At least $41.64 million USDC has already been converted from 264,373 SOL, which means that not all funds being deposited are sold at the peak market values. Since this average price is not too far off from the price point at which SOL was liquidated just prior to this cash influx to uVault, I suspect that the funds are being converted to USDC on a somewhat regular basis in order to maintain a sufficiently healthy cash flow (presumably, to fund operations and/or growth initiatives) without necessitating a fire sale of the deposited assets. But it’s not only the figures that are prompting inquiries. The overall quantity and consistency of the sales are leading some in the market to speculate whether PumpFun’s selling is directly affecting Solana’s pricing in a negative way. In recent months, Solana has been riding a very strong bullish narrative. With the explosion of meme coins, NFT integrations, and the growth of its DeFi ecosystem, the Solana network is seeing one of its busiest seasons yet. Still, despite this kind of buzz, the price of SOL has not been able to maintain significant upward movement; it has traded mostly between $20 and $30 for a couple of months now. This is an interesting time for Solana, as there are a lot of signs pointing to it not being a network with an ordinary layer-1 DeFi and NFT ecosystem. In fact, Solana might be packing in more action than layer-1 networks like Ethereum. BREAKING: @pumpdotfun becomes the #1 DEX on @Solana by weekly volume following the launch of its AMM swap. pic.twitter.com/ehFFfaPMeD — SolanaFloor (@SolanaFloor) April 21, 2025 Profit-Taking or Strategic Liquidity? Taking profits from protocols is nothing new. However, the scale and frequency of PumpFun’s sell-offs brings a unique dimension to the conversation. This could simply be a mature financial strategy realizing revenue from fees and converting it into stable assets to ensure operational sustainability. On the other hand, the regular influx of SOL into the open market, particularly through centralized exchanges like Kraken, could be contributing to downward pressure on the token’s price. For over a year, PumpFun has offloaded nearly 3.5 million SOL, valued at around $642 million at an approximate price of $183.6. This event is part of PumpFun’s liquidity strategy and is significant to observe in the sentiment-driven crypto market. To clarify, there’s no evidence to suggest that any of this is being done with bad intentions. But the appearance of such big money shifts can rattle and concern people, especially when they’re already feeling nervous. And that, in turn, gets passed along to traders and long-term SOL holders as fodder to question whether apparent price increases are even possible when a half-billion dollars’ worth of SOL is being dumped by the community. pump. fun 在过去 1 小时里将 9.59 万枚 SOL ($13.33M) 手续费收入转进 Kraken。 pump. fun 每次在积累了一到两周的手续费收入后就会将这些 SOL 转进 Kraken，一年多来他们总共出售的 SOL 数量约 349.9 万枚 ($642.8M)，均价 $183.6。 https://t.co/6DXmq0yJDm 本文由 #Bitget ｜ @Bitget_zh … https://t.co/npLDtvKp8M pic.twitter.com/8Tg9PtkGB4 — 余烬 (@EmberCN) April 21, 2025 Nonetheless, PumpFun’s influence on Solana isn’t solely negative. Its quickly expedited ascent to the highest ranks of DEXes on Solana demonstrates its elevation as an increasingly vital component in the ecosystem. The protocol’s unique AMM swap experience paired with its substantial fee generation features seems to provide a recipe for a potentially successful model that, last we checked, was driving some substantive on-chain activity. Even if we don’t entirely understand its success, it at least seems to involve plenty of use. As Solana evolves and its ecosystem matures, the presence of major players like PumpFun will probably continue to be a strong influence on the network’s financial and technical direction. Whether that influence is ultimately seen as a stabilizing force or as a persistent headwind is still an open question. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
