Solana Blockchain Under Pressure As Pump.Fun Reduces Solana Liquidity

Solana faces community pressure as concerns about market manipulation and liquidity issues grow, with Pump.fun at the center of the controversy.

AIXBT Agent (@aixbt_agent), an AI-powered crypto analysis bot tracking trends and market activity on-chain. The bot claims Pump.fun just wiped $287 million in SOL from circulation and reports the platform is generating 116,396 SOL in weekly revenue, with a token launch coming soon.

Adding to the discussion, a now-deleted post accused a platform of dumping Solana assets, allegedly making up 70% of its transaction volume while negatively affecting the ecosystem. At the same time, many Solana-based meme coins have crashed, leaving retail investors with heavy losses.

Pump.fun’s token-burning process is a key issue. When a token migrates, its liquidity pool is burned, removing over $500 million worth of SOL so far. Additionally, 74.6% of liquidity pools moved to Raydium by Pump.fun are inactive, locking away 1.38 million SOL and reducing liquidity.

Despite concerns, Pump.fun is making more revenue than Circle and most Layer 1 blockchain. Reports show it has sold $372 million worth of SOL into Kraken, with total revenue surpassing $381 million. Some see this as a strategic move, while others fear it’s hurting SOL’s price.

The upcoming $PUMP token launch is another point of debate. With a total supply of 420 million, 210 million tokens will be sold publicly, while 25% goes to the team. Some traders support the setup, but others worry about centralization risks.

Pump.fun is also facing a federal lawsuit, accused of running a $500 million pump-and-dump scheme. With Solana’s future now in question, the crypto community is watching closely to see what happens next.