The memecoin launchpad PumpFun continues to draw attention as it moves a large amount of Solana (SOL) to the Kraken exchange, sparking concerns about a new sell-off.
According to data from Onchain Lens, PumpFun’s latest transfer moved 54,113 SOL, equivalent to approximately $7.81 million, to Kraken.
PumpFun’s Ongoing Large SOL Transfers
Notably, this transaction is part of a series of large transfers by PumpFun, totaling 1,573,313 SOL so far this year. On January 2, CoinGape reported that PumpFun transferred 120,000 SOL, worth about $22.88 million, to Kraken.
Last month, the platform moved another 148,759 SOL valued at $28.22 million, contributing to the ongoing sell-off trend. According to Onchain Lens, over 1.5 million SOL, worth $293.26 million, has been transferred this year, placing significant selling pressure on Solana.
While many speculate that PumpFun is offloading SOL, some argue that the platform might have other reasons for these large transfers. The latest transaction has sparked debate about its potential impact on Solana’s price stability.
PumpFun and the Launch of PumpSwap
In an effort to restore its reputation within the ecosystem, PumpFun has introduced PumpSwap — a decentralized exchange (DEX) designed to offer investors a more efficient way to trade meme coins.
According to updates, the platform aims to reduce reliance on centralized exchanges like Kraken and improve liquidity within the Solana ecosystem.
Although PumpSwap is seen as a positive step, many investors remain skeptical about PumpFun’s credibility due to the ongoing large SOL transfers. Some view it as a distraction from the sell-off and other ethical concerns.
Solana Price Outlook Amid Consolidation
Despite PumpFun’s frequent SOL transfers, Solana’s price has remained relatively stable. After the February 13 transfer of 148,759 SOL, CoinGape reported a 1.2% drop in SOL’s price before it recovered.
Furthermore, analysts remain divided on whether the market will continue to consolidate or if Solana will experience a breakout. Some stakeholders, like VanEck, predict that Solana could soar to $520 in the long term if market conditions are favorable. However, repeated large-scale transfers like those from PumpFun could pose a headwind for the coin.
As of this publication, CoinMarketCap data shows that SOL was trading at $143.99, up 1.60% in the last 24 hours.
