Pump.fun generated $10.2 million in fees in a week, ranking 17th across the crypto sector.
The PUMP token dropped 47.91% after its launch due to heavy private investor selling.
Early unlocks gave large holders access to most of the tradable supply, impacting market stability.
Pump.fun’s PUMP token has declined sharply in value, falling nearly 48% since its launch on July 12. This drop occurred even as the platform generated $10.2 million in combined weekly fees between July 14 and July 20, driven by both its memecoin launchpad and a newly introduced decentralized exchange.
Trading volumes remained steady across the platform’s services, with fees split nearly evenly between the launchpad and DEX. This level of performance placed Pump. fun 17th in the entire cryptocurrency ecosystem in terms of fees generated, according to data from DeFi researcher @defiIgnas.
Fee distribution supports token burn mechanism
A portion of the DEX fees, around 25%, is allocated toward burning PUMP tokens, reducing overall supply. This mechanism is designed to create scarcity and support the token’s value. However, despite the growing activity and fee income, the price of PUMP has declined more quickly than the pace of fee reduction.
The primary driver behind the price drop appears to be the structure of the token launch. Only 15% of PUMP’s total supply was allocated for public sale. In contrast, private investors received 18% of the token supply, with no lock-up period imposed. These tokens became available for trading immediately after the initial coin offering.
Significant token selling pressures the market
Large holders, often referred to as whales, controlled a majority of tradable tokens from day one. Reports indicate that two early private investors sold a combined 25.5 billion tokens, collecting approximately $39.6 million in returns. This significant early profit-taking has introduced heavy selling pressure, flooding the market with supply and outweighing buying interest.
Despite the PUMP token’s price drop, the Pump.fun platform continues to attract users and generate transaction volume. Both the memecoin launchpad and DEX remain in use, contributing consistently to platform revenue. However, the lack of restrictions on early token holders has affected investor sentiment and led to continued price weakness.
