Pump.fun, a prominent platform for launching meme tokens, has once again gripped the attention of netizens following a transfer of 120,000 SOL (approximately $22.88 million at the time) to Kraken, according to an Arkham Insight update. This is the first Solana transfer the Solana launchpad has made in 2025.

According to recent data, the platform’s fee account holds 172,000 SOL and 101,000 JITSOL, with a combined value of about $55.19 million. The transaction was followed by another substantial deposit of 292,437 SOL (valued at $55.5 million) to the same crypto exchange, according to LookOnchain. 

Pump fun deposited 292,437 $SOL($55.5M) to #Kraken again today after 23 days.So far, #Pumpfun has deposited 1,500,893 $SOL($303M) to #Kraken and sold 264,373 $SOL for 41.64M $USDC.#Pumpfun has earned a total of 2,016,391 $SOL($398M).https://t.co/eO2OHLWL0c pic.twitter.com/UG8RjIYa1N

— Lookonchain (@lookonchain) January 2, 2025

Over the past month, Pump.fun has deposited a total of 1,500,893 SOL (worth $303 million) to Kraken and sold 264,373 SOL for $41.64 million in USDC. The project has reportedly earned a staggering 2,016,391 SOL (valued at $398 million), sparking concerns among investors who accuse Pump.fun of “dumping” on Solana. 

Some crypto enthusiasts believe these actions could harm the ecosystem, erode trust, and “depress” the value of SOL.

Pump.fun’s controversial rise to success

Created by Noah Tweedale, Alon Cohen, and Dylan Kerler, Pump.fun quickly became a go-to platform for memecoin creators in the Solana ecosystem. It allows users to issue meme tokens and reach a vast user base with minimal effort. 

However, the community has constantly criticized the platform’s business model, which some argue prioritizes profits over the long-term sustainability of the Solana network.

In December 2024, the platform removed a live-streaming feature used by some token creators for questionable promotions. Additionally, Pump.fun barred UK users from accessing the site after the Financial Conduct Authority (FCA) issued a warning. While Cohen emphasized compliance with local laws, he declined to reveal the platform’s domicile, fueling further speculation.

Crypto users have taken to X to voice their concerns about Pump.fun’s impact on Solana. One user remarked, “This is the reason your tickers don’t pump. All they do is extract from the ecosystem and dump on Solana.”

Another accused the platform of exploiting the network, saying, “These losers at Pump.fun are the reason SOL won’t stay above $200.”

Has there been a more extractive protocol than pump fun? It dgaf about the Solana ecosystem

— Teddy (@TeddyRoosevalt) January 2, 2025

A Solana enthusiast echoed these sentiments, questioning whether there has been a more “extractive” protocol than Pump.fun. 

Not all is gloom: Record-breaking revenue for Solana dApps  

Despite the controversy surrounding the Pump.fun launchpad, Solana’s decentralized applications (dApps) performed exceptionally well last year. In November 2024, Solana’s native dApps generated $365 million in revenue, setting a new monthly record. 

Nearly 84% of this revenue came from decentralized finance (defi) protocols, while wallets and infrastructure contributed less than 15%.

Pump.fun emerged as the first Solana-based protocol to exceed $100 million in monthly revenue. The platform’s exponential rise is attributed to its appeal to crypto gamblers, who are drawn to its flashy design and accessible token issuance tools. 

According to a Dune Analytics dashboard, over 5.3 million tokens have been launched on the platform since its February 2024 debut in the UK, and it has amassed a revenue of over 2 million SOL tokens. 

Daily active addresses on Pump.fun. Source: Dune Analytics

Recent stats also show that the number of daily active addresses and tokens deployed increased toward the end of 2024. 

Solana’s price struggles continue 

Meanwhile, amid Pump.fun’s selloff, Solana’s price continues to face challenges during the start of 2025. At press time, Solana is changing hands at $206 per coin, representing an 8% uptick over the last 24 hours.

Solana 24-hour price chart. Source: TradingView

On Tuesday, bulls attempted to push SOL above its 20-day EMA at $198 and succeeded, but the bears managed to cap the momentum at $205. Key support levels lie at $176 and $185, coinciding with high-demand zones.

Solana key support and resistance zones. Source: TradingView.

Momentum indicators suggest declining bullish strength, raising the possibility of further price drops. If the bears maintain control, the SOL/USDT pair could slide to $155. Conversely, a breakout above $204 could signal renewed bullish momentum, potentially driving the price toward the 50-day SMA at $219. 

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