Between July and now, the price of Pumpfun (PUMP) has spiked by more than 200%. The rally has been strong, and the sentiment is still high. However, do we expect to continue seeing these highs, or is the price showing signs of crashing already?
We will consider this by taking insights from a video by Gerhard on the Bitcoin Strategy YouTube channel. The analyst looked at various metrics to determine what to expect next for the PUMP price.
What you'll learn 👉
Why Pump.fun Price Is Pumping
The analyst compared Pump.fun to an insecure friend who overcompensates after being mocked. The project’s launch was rocky, sparking skepticism and sending PUMP price lower than many expected. To counter this, the team introduced a buyback program that fueled confidence and helped lift prices.
That move made PUMP one of the most liquid tokens on Solana with $26 million locked in liquidity. On some days, PUMP has accounted for nearly $6 billion out of Solana’s $8 billion in trading volume.
This dominance has made Pump.fun an essential part of Solana’s ecosystem.
So far, the token has delivered more than a 3x gain since August 26, a rally that bags the question of how much more upside is left.
Why the Rally May Not Be Fully Organic
Numbers look strong, but the analyst pointed out that the source of growth matters. The increase in holders looks encouraging, but a closer look shows that most of the activity comes from smaller retail investors. Whales and larger wallets have not entered aggressively.
This suggests that while enthusiasm is real, it is being driven more by everyday traders than by deep-pocketed investors. The buyback program created excitement, but whether it can sustain momentum without more organic adoption is uncertain.
Pump.fun price growth has been impressive, but the market cap of PUMP now hovers close to $3 billion while the total value locked is just above $300 million. That gap between market value and capital inside the project raises questions about sustainability.
Gerhard also noted the role of perpetual futures. Many traders are betting on rising PUMP price using leverage. This adds fuel to the rally, but it also creates risk. If speculation cools or buybacks slow down, those leveraged positions could unwind quickly, pushing prices lower.
Will PUMP Price Keep Rising?
According to the analyst, momentum is still strong and short-term conditions favor the bulls, which could make PUMP price climb higher.
Gerhard said the buyback program did its job as it stabilized PUMP after a shaky start. The rally that followed was sharp; however, long-term growth needs more than hype.
Token unlocks will play a role, and Solana’s dominance will also matter. Leveraged bets will also shape Pump.fun price.
The story of PUMP shows how fast sentiment can change. The token moved from doubt to excitement. Pump.fun price soared on buybacks, retail demand, and Solana strength.
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The rally may rise further or lose steam. Much depends on real adoption beyond hype. For now, PUMP is still one of the most interesting tokens in the Solana space.
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