Founder of Three Arrows Capital Zhu Su expressed market views stating, "The TGE of Pump.fun has boosted the rise of SOL," for the following reasons:
Pump.fun itself does not hold a large amount of SOL, so it will not create price pressure through selling SOL, eliminating market concerns about the "selling risk";
There is a misunderstanding in the market regarding Pump.fun selling SOL. Users typically purchase SOL with USD, participate in Pump.fun transactions, and pay fees in SOL, while the platform subsequently converts SOL back to USD. This model is just a regular consumer business process and will not directly lead to a decline in SOL price;
The high revenue of Pump.fun within the Solana ecosystem (such as reaching $106 million in monthly revenue in November) has attracted more market attention, highlighting Solana's potential as a high-performance blockchain. This not only attracts more developers to build projects on Solana but may also drive the revaluation of SOL as an investment-grade consumption protocol;
Investors in the Solana ecosystem participating in the initial token issuance of Pump.fun, after making profits, tend to reinvest their funds into SOL, further increasing its demand and price.