Hello everyone, I am Penny.
Just four hours ago, Pump.fun transferred 109,587 SOL (worth 24.36 million USD) to Kraken, making headlines once again.
However, due to several factors, the sales speed of SOL at Pump.fun is expected to slow down in the coming months:
1. Depleted reserves: Over the past two months, Pump.fun has nearly exhausted its SOL holdings. The remaining assets include only 100,000 JITOSOL, valued at 25.85 million USD.
2. Decrease in transaction fee income: The speculation around SOL-based meme trading has weakened, leading to a significant drop in transaction fee income. In November, Pump.fun's daily transaction fee income was 15,000-20,000 SOL. By December, this figure had halved to about 10,000 SOL per day.
Pump.Fun has accumulated over 1.5 million SOL.
Since its establishment, Pump.fun has accumulated transaction fees of approximately 1.655 million SOL. However, its sales have reached 1.546 million SOL, valued at 300.76 million USD, with an average selling price of 195 USD.
Meanwhile, the cryptocurrency market as a whole has experienced significant volatility in the past 24 hours. Approximately $1.53 billion in positions were liquidated, with long positions accounting for $1.39 billion of the total. The Solana ecosystem is also under significant pressure, as over $300 million was liquidated on Solana perpetual exchanges during the same period.
Pump.fun's latest activities and ongoing market fluctuations highlight the dynamic changes in the crypto space. Although Solana remains a key player, the decline in trading enthusiasm and broader liquidation trends may signal that the network and its participants are entering a cooling-off period.
So, what to ambush for explosive growth next?
Last month, there were reports that Wall Street institutions shifted to RWA, but the market only responded this month, indeed, institutions are ahead of retail investors. Additionally, DWF Labs recently announced a $20 million AI Agent fund, so everyone can consider reallocating some funds from the MEME sector to AI and RWA sectors.
Where there is volatility, there is opportunity; it just depends on whether you dare to buy. A coin only attracts attention when it skyrockets, and then everyone says they will wait for a pullback to buy. However, when the market truly presents an opportunity, very few dare to board, thinking it could drop even further.
The correct approach is to buy small on minor dips and accumulate on major dips. Don't go all in with your entire position right away; buy in two layers every time there's a 10% pullback. No one can catch the absolute lowest price; getting an average price is sufficient. Remember, bottom fishing is about spot trading, avoid futures and leverage, gradually buy in, keep lowering the average price, and hold on, waiting for a new round of bullish trends.
I am Penny, a long-term coin holder enthusiast. I do not engage in contracts or leverage. I earn coins in bear markets and earn USDT in bull markets. If you share this investment preference, feel free to follow me.
Let's navigate through the bull and bear markets together, huddling for warmth and striving to be a stronger retail investor.