Meme coin market struggles lead to a decline in Pump.fun's PUMP token value.
In a week marked by significant movements in the cryptocurrency market, two standout developments have caught the attention of investors and analysts alike. The first ETF with spot exposure to Dogecoin has launched, and the native token for meme coin launchpad Pump.fun, PUMP, has experienced a rollercoaster ride.
Dogecoin ETF Launches Under Stricter Regulatory Framework
The U.S. Securities and Exchange Commission (SEC) approved the first Dogecoin ETF last weekend. The Rex-Osprey Dogecoin ETF (ticker DOJE) was launched under the stricter Investment Company Act of 1940 regulatory framework. According to reports, the ETF already posted nearly $6M in volume in its first hour of trading, as tweeted by Eric Balchunas, Bloomberg Senior ETF Analyst.
Pump.fun Ecosystem Faces Mixed Fortunes
Meanwhile, the Pump.fun ecosystem has seen a mixed bag of results. The all-time high for PUMP, the native token for Pump.fun, was $0.008819, reached on September 14. However, the price has since dipped, currently standing at $0.007213, a 9.2% decrease in 24 hours as of Friday morning.
The market cap of the Pump.fun ecosystem has decreased by 6% to $3.85 billion. Notable losses within the ecosystem include TROLL, down 10%, and Aura, down 12%. Despite these setbacks, PUMP has surged 142% over the past 30 days, a testament to its initial rollout surpassing analyst expectations.
Memecoins and the Broader Crypto Market
Altcoins have rallied over the past days, with Bitcoin easing down 0.8% to $116,263 and Ethereum falling 1.3% to $4,521. However, the meme market as a whole shed 4.8% over the past day, shrinking to $87.2 billion.
Interestingly, the momentum in the meme market comes despite broader struggles in the crypto gaming space, where unsustainable token launches have forced multiple shutdowns this year.
Predictions and Outlook
According to data from CoinGecko, PUMP is 11.5% below its all-time high. On prediction market Myriad, users have flipped on PUMP's chances overnight, predicting a 66% chance of its market cap dropping to the lower bound.
However, the resilience shown by PUMP in the face of these setbacks suggests a market that is far from predictable. As always, investors are advised to do their own research and consider their risk appetite before making investment decisions.
The mobile app associated with Pump.fun has seen a 450% increase in daily active users over the past three months, indicating a growing interest in the platform despite the recent price fluctuations. The SEC's move to approve generic listing standards for crypto exchange-traded products may add further fuel for select altcoins, including PUMP, in the coming days.
In conclusion, the launch of the Dogecoin ETF and the performance of PUMP within the Pump.fun ecosystem are two significant events that have shaped the cryptocurrency market this week. As always, the market remains volatile and unpredictable, making it a fascinating space for investors and observers alike.
