Pump.fun Moves $436M to Kraken as Meme Coin Activity Declines
- Pump.fun moved $436M in USDC to Kraken post-October crash, signaling off-chain fund shifts.
- The platform’s revenue fell to $27.3M in Nov, a significant drop from September’s $58.9M.
- Pump.fun’s $855M in stablecoins raises concerns about future withdrawals affecting the market.
Pump.fun has drawn sharp attention after transferring more than $436 million in USDC to Kraken following the October crypto crash. The Solana-based meme coin launchpad began moving the funds a week after the $19 billion market wipeout weakened trading activity across the sector.
Blockchain platform Lookonchain reported the transfers. The movements signaled that operators were taking large sums off-chain during a period of falling activity and reduced platform revenue.
Solana Meme Coin Activity Continues to Cool
The transfers took place as meme coin speculation on Solana slowed. Trading demand had already weakened before the crash. The widespread downturn accelerated the shift, and users saw fewer high-volume token launches on the platform. Market watchers noted that the sharp decline in appetite among retail traders aligned closely with these movements.
Pump.fun’s monthly revenue dropped below $40 million for the first time since July. The platform recorded $27.3 million in November, down sharply from September’s $58.9 million. The reduced revenue underscored the broader decline in speculative trading within the meme coin ecosystem as sentiment cooled across the market.
A spokesperson for Pump.fun said the relevant team would respond to questions about the transfers when they have time. The comment came after inquiries regarding the purpose behind the large off-chain movements and whether the platform plans further token liquidations.
Crypto investors raised concerns over the scale of Pump.fun’s stablecoin movements. Some traders viewed the transfers as a possible signal of more selling pressure. Their criticism reflected a belief that large operators could influence sentiment by shifting major sums, even if the transfers did not immediately convert to market sales.
Analyst Nicolai Sondergaard from Nansen said meme coin trading had been declining for months. He noted that retail participants experienced repeated losses. He explained that this contributed to the long-running downturn, which then accelerated after October’s market collapse. The weakened activity aligned with the platform’s falling revenue and shrinking trading volumes.
Pump.fun’s Large Reserves Draw Ongoing Scrutiny
Reports from Arkham showed that the wallet linked to Pump.fun still holds around $855 million in stablecoins. It also holds an estimated $211 million in Solana tokens. These reserves left open the possibility of further withdrawals, which market observers continued to monitor closely across onchain trackers.
Onchain analyst EmberCN said the $436 million transfer was likely a withdrawal rather than an instant sell-off. He noted that the funds traced back to institutional private placements of the PUMP token in June at a price of $0.004. The clarification suggested that the movement did not necessarily reflect immediate selling into the open market.
Related: Pump.fun Revenue Soars to $800M as Heaven’s LIGHT Pushes $2B
Pump.fun launched its “Mayhem Mode” feature during this period. The feature uses AI to support token creation processes. According to sources, the update raised the average number of daily token launches slightly, moving from 17,300 to 17,800. The increase was modest and did not shift overall market sentiment.
The PUMP token has continued to slide. It has dropped more than 24% in the past week. It now trades at $0.002558, falling below the June private sale price. The decline aligned with the weakening activity and ongoing withdrawals observed across the platform.
Market participants remained attentive to Pump.fun’s next moves. The combination of falling revenue, shifting reserves, and declining token value left many watching for further on-chain activity.
