Solana’s price has remained surprisingly stable despite significant selling pressure from the memecoin launch platform Pump.fun. The platform’s fee account offloaded $6.6 million worth of SOL tokens on October 22, but this did little to dent the cryptocurrency’s upward momentum, with Solana even posting a weekly price gain.
$47 Million in Solana Still Held by Pump.fun
The selling from Pump.fun comes after the platform generated total revenues of 969,945 SOL (worth $162 million), according to Lookonchain. As of the latest update, Pump.fun has sold 503,343 SOL ($78.7 million) at an average price of $156.4 per token. Despite these large sales, the platform still holds over $47 million in Solana, potentially introducing further selling pressure in the future.
Pump.fun sells $6.6 million SOL. Source: Lookonchain
Impact of Whale Activity on Solana’s Price
Large crypto-holding entities, often referred to as whales, have a significant impact on the price of cryptocurrencies. Whale movements, especially large sales, can cause sharp fluctuations in value. Pump.fun’s previous sales led to a 12% drop in Solana’s price in early September when it sold $41 million worth of SOL tokens. However, Solana’s current price resilience may indicate strong buying interest, even in the face of these large-scale sales.
Memecoin Craze and Solana’s Price Action
The launch of memecoins on the Solana network has drawn attention, with some suggesting it could be exerting downward pressure on the SOL price. According to crypto trader Luke Martin, Solana’s recent rally slowed after users began mass-launching memecoins on Pump.fun. Martin’s analysis shows that SOL’s upward momentum stalled around the time these memecoins flooded the market.
Pump.fun fee account. Source: Solscan
Potential ETF Catalyst for Solana
While concerns about selling pressure from Pump.fun and the memecoin craze persist, there are potential bullish catalysts on the horizon for Solana. Anticipation is growing around the approval of Solana-based exchange-traded funds (ETFs), following the launch of Brazil’s first Solana ETF in August. This could provide a positive spark for SOL’s price in the near future.
