Pump.fun is set to release approximately 10 billion PUMP tokens, valued at $18 million, on April 12. Despite the potential for increased supply to exert downward pressure, market reactions have been muted, with PUMP slipping only 1.25% in the past 24 hours. This suggests that investors are positioning for potential gains rather than declines.
Data from DeFiLlama indicates that the token unlock represents 1% of Pump.fun's total supply and 1.69% of its circulating float. Historically, such events are seen as bearish due to the risk of dilution. However, current sentiment is bullish, with all 65,400 voters in a recent poll expecting further gains. On-chain data supports this optimism, showing an increase in PUMP holders, which suggests sustained interest.
While past unlocks have led to short-term rallies, PUMP has experienced a 42% decline since its January peak, highlighting the long-term pressure from expanding supply. Nonetheless, the current sentiment and on-chain activity indicate a potential short-term rally following the upcoming unlock.
Pump.fun Unlocks $18M in Tokens Amid Bullish Market Sentiment
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