Pump.fun, the memecoin launchpad that dominates Solana’s onchain activity, sold off approximately 4.1 million SOL tokens worth $741 million, just days before its official suspension from X.
According to Lookonchain, the platform conducted mass token sales across multiple transactions beginning May 19, 2024, at an average price of $180 per SOL.
Among the transfers, 264,373 SOL was directly swapped for $41.64 million in USDC at a price of $158, while the bulk, 3.84 million SOL, was sent to Kraken, suggesting potential liquidation on the exchange. With memecoin projects already under scrutiny, this kind of treasury dump worsened trust issues and added pressure on SOL’s price.
Repeated treasury transfers to centralized exchanges like Kraken signal profit-taking by the platform’s operators rather than reinvestment into the Solana ecosystem. The shift has sparked bearish sentiment, especially amid a broader downturn in Solana’s price action and social buzz.
Solana Firms Are Gaining Traction Despite SOL Sell-off
Despite Pump.fun’s exit wave, Solana-based treasury firms are still gaining traction. A Bloomberg chart shows companies like DeFi Development Corp. and Upexi Inc. are outpacing SOL’s growth, reinforcing institutional confidence in Solana as a long-term asset.
Bloomberg reports that Cantor Fitzgerald analyst Thomas Shinske highlighted in a recent note that SOL may eventually surpass Ethereum in appeal to treasury firms, thanks to its low fees, fast speeds, and staking incentives.
These firms, often publicly listed, can raise capital at a premium and reinvest in the SOL ecosystem, offering investors exposure to Solana without holding the tokens directly.
