30s Summary
Despite Pump.fun’s ongoing sale of Solana (SOL) tokens, SOL’s value has remained steady and even grown by over 9.3% over the week. Pump.fun has sold more than $6.6 million of SOL tokens on October 22nd and retains a significant amount of SOL. Sales patterns from whale accounts like Pump.fun can impact cryptocurrency prices. Further pressure on SOL value could occur as Pump.fun still holds almost $48M worth of SOL. Furthermore, the mass-launch of meme coins on Solana may also be affecting its price.
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The value of Solana managed to hold steady in the face of continued sales pressure from meme coin launch platform Pump.fun. It seems that, on October 22nd, the Pump.fun fee account offloaded more than $6.6 million of Solana (SOL) tokens. However, Pump.fun still retains a sizeable chunk of Solana, as revealed in a post by blockchain intelligence firm Lookonchain.
The post states that, about 5 hours ago, Pump.fun’s fee account released another 40,000 SOL, which is about $6.68M. To date, Pump.fun has made $162M from 969,945 SOL and sold 503,343 SOL, equivalent to $78.7M, primarily at an average price of $156.4.
Despite the selling spree, Solana’s value has grown by over 9.3% over the week. The world’s number five cryptocurrency also recorded a 0.8% increase within a day, up to 11:18 am UTC, to trade at $165.8, as per the data from Cointelegraph.
Whale accounts, i.e., individuals or entities holding vast sums of cryptocurrency, can notably impact a cryptocurrency’s price since their transactions move a substantial amount of capital within the market. Traders frequently keep an eye on whale sales patterns for indications of the likely short-term price direction of a cryptocurrency.
The ongoing Solana sales from the Pump.fun charge account might be pushing down the price of Solana.
In the week leading up to September 4th, Solana’s value fell by over 12% to as low as $128, directly following a sell-off of $41 million in SOL tokens performed by Pump.fun at an average token price of $157.5.
Further selling pressure on Solana could come from the meme coin launch platform because it still holds another $47.9M worth of Solana tokens in its fee account, as shown by data from Solscan.
Current meme coin frenzy on Solana may also be affecting the price of SOL.
Crypto trader and podcast host, Luke Martin, believes that the rally of the Solana token began to stagnate as soon as users started mass-launching meme tokens on Pump.fun. He also points out that the Solana price chart reflects a halt in the rising trend right at the time when an abundance of meme coins started to be launched.
However, there’s growing excitement about a possible Solana-based Exchange-Traded Fund. Brazil’s first-ever Solana ETF was approved back in August, potentially paving the way for future developments in other jurisdictions.
Source: Cointelegraph