PUMP token price climbed nearly 50%, rising from about $0.0013 to $0.0020, even as the largest token unlock in Pump.fun’s history was released. Typically, such significant unlocks spark sell-offs. This time, buyers stepped in and absorbed the influx of tokens, preventing the expected price drop.
Record Token Unlock Absorbed, Rally Holds Strong
In mid-July, 32.5 billion PUMP tokens from investor allocations and 50 billion from team allocations became eligible for unlocking, accounting for 25% each. The remainder will unlock gradually over the next three years. Despite this massive supply event, PUMP’s price surged, pushing toward a key long-term resistance zone between $0.00210 and $0.00215. This shift redirected market focus from supply concerns to the potential continuation of the uptrend.
Analyst Ansem highlighted on X that PUMP generates around $1 million in daily revenue even under poor on-chain conditions, a rarity in crypto projects. He suggested that renewed activity on Solana's network could boost PUMP to new all-time highs, noting the token's valuation is far more conservative compared to some peers with similar revenue figures.
BOOST Mode Fuels Ecosystem Growth
Pump.fun recently launched BOOST mode, innovatively converting liquidity lost during coin migrations into buybacks and burns. This process redirects dead liquidity estimated at over $100 million lost annually into active buying, effectively increasing liquidity by roughly 20% per new coin. Although BOOST targets newly migrated tokens rather than PUMP directly, it enhances the ecosystem's overall economics, indirectly benefiting PUMP holders.
The BOOST mode announcement coincided with a weekly price gain exceeding 30%. On July 20, PUMP surged 20-22% in a day, with trading volume spiking over 500% to $131 million. However, Open Interest began declining as price rose, indicating that this rally was largely driven by spot purchases rather than leveraged trading positions.
The price now faces resistance near $0.00210 $0.00215; surpassing this barrier will be critical to confirm a sustained trend reversal. Pump.fun’s latest developments and strong on-chain revenues suggest the project’s fundamentals remain solid, even amid challenging market conditions.
