Pump Token Price Drops Due to Insider Sales and Increased Supply

The recent decline in PUMP token price can be attributed to multiple factors, including insider sales and increased supply.

Sell pressure emerged after a large wallet began offloading Pump.fun batches into USDC, valued at around $25.39 million.

Distribution of tokens unfolded gradually rather than through a single liquidity shock, with 543 million tokens sold initially, generating approximately $1.2 million in USDC on February 17th.

Activity escalated quickly, surpassing 2 million tokens by the 19th of February and reaching 3.376 billion tokens by the 21st, converting to roughly $7.23 million.

The repeated token swaps, each routed into around $30,000 USDC fills, reduced slippage while sustaining continuous sell pressure.

As supply entered circulation, price drawdown deepened, with PUMP remaining down approximately 75% from peak levels.

However, distribution was not the only pressure point; declining platform revenue and memecoin fatigue reinforced liquidation motives.

The market structure and DeFi leadership divergence also contributed to downside pressure, with Uniswap leading in daily volume and weekly turnover, followed by PancakeSwap and Pump.fun ranking third.

Fee performance echoes this hierarchy, with Uniswap recording $1.46 million in 24-hour fees and $964.52 million over 30 days, while Pump.fun generated $3.15 million in 24-hour fees and $100.13 million over 30 days.

Solana's supply structure continued to evolve, with circulating supply near 568 million SOL out of roughly 620 million total, indicating a 8.4% remaining locked.

Pump.fun reported $1,444,291 in PUMP purchases over the last 24 hours, reinforcing sustained buy-side activity and revenue-funded buybacks that have now offset 25.062% of circulating supply.

The milestone is significant as PUMP operates on a fixed 1 trillion token supply, reducing available float and structurally declining supply-side pressure if demand remains stable.