Pump.fun’s 2-week high looks impressive – UNTIL you see what’s really happening

Key Takeaways

What fueled Pump.fun’s 13% rally?

Perpetual traders added $56 million in Open Interest, while Spot buyers accumulated $2.94 million.

Why could PUMP’s surge fade soon?

Protocol revenue plunged 72% to $945K, Fees dropped to $1.82 million, token graduations fell from 286 to 70, and Daily Active Users dropped under 86,000.

Pump.fun [PUMP] recorded a major liquidity surge in the past day, with price climbing more than 13% from its previous daily candle close.

Market data showed mixed sentiment, as revenue and fees slipped to their lowest levels in two weeks. This gap between rising prices and falling usage left questions about the rally’s durability.

AMBCrypto analysis provides more context on what this could imply for PUMP.

Where did PUMP’s surge come from?

The recent rally in PUMP was driven largely by investors in the Perpetuals market, who poured more liquidity into the memecoin.

In fact, analysis showed that inflows in the Derivatives market amounted to $56 million, based on recent percentage changes in Open Interest.

The surge also coincided with the Open Interest-Weighted Funding Rate holding in the positive zone. This indicated that long contracts were dominating the market and providing most of the liquidity.

Spot investors also joined in, though to a lesser extent. This group accumulated $2.94 million worth of PUMP—their first notable accumulation since the 25th of September, when they added $3.52 million.

This buying activity across Spot and Perpetuals may be speculative, given that on-chain data showed falling usage and revenue.

Revenue falls—Is this a warning?

Sentiment around PUMP has weakened. At the time of writing, Revenue and Fees generated on the protocol dropped to a two-week low.

Revenue fell from $3.38 million to $945,960 at press time, while fees declined more sharply, from $8.52 million to $1.82 million during the same period.

That steep decline suggested weaker activity on Pumpfun and PumpSwap. It pointed to lower demand for the asset across on-chain users.

On top of that, active investors had not reached past milestones set in previous months.

Milestones become harder to reach

According to Artemis, both “Tokens Graduated” and “Token Minted” metrics on the Pump.fun protocol fell to monthly lows, signaling waning user interest and purchasing power.

Tokens Graduated —those that reached a $100,000 market capitalization—dropped sharply from 286 to just 70 at press time.

Similarly, minted coins, referring to meme tokens created on the platform, fell to 13,700 within the same period. This decline suggested that reduced investor interest is discouraging creators from launching new tokens.

The launchpad’s Daily Active Users also plummeted, hitting a recent low of 85,700, further confirming fading activity in the market.