Key takeaways
Why did Pump.fun go down this week?
The token fell 12% as DEX users declined and $11.3 million in PUMP outflows hit on-chain data.
What does the PUMP bounce hint at?
CoinGlass showed strong liquidity near $0.0046, an area where short covering rallies often emerge.
Funny Bomb [PUMP] experienced one of the steepest declines in the market, falling 12% as sentiment changed noticeably.
While this drop may indicate extended weakness, on-chain and derivatives data suggest a possible reversal is already forming.
Network activity rises again
On-chain data showed a significant increase in user engagement on the Pump.fun protocol. According to the latest data From Artemis, the number of transaction users on the protocol increased to 110,200.
This increase does not necessarily indicate a clear bullish or bearish trend; rather, it reflects a mixed dynamic in the market. Notably, transaction volume during this period jumped to $1.5 million, suggesting an increase in trading activity on the platform.
Source: Artemis
However, given the prevailing bearish tone, most of these transactions likely came from sellers reducing their exposure.
Still, the Total Value Locked (TVL) data implied that strong selling pressure persisted, with approximately $11.33 million worth of PUMPs withdrawn in 24 hours.
Divergent Sentiment Among CEX and DEX Investors
A widening gap has formed between decentralized and centralized currency sentiment.
Reports show that Spot DEX investors maintained a bearish stance, which is reflected in a simultaneous decline in both users and transactions.
Transactions fell to $8.4 million, involving only 221,000 users. When key metrics like these drop, it usually indicates that investors are exiting the market, likely after selling their holdings.
Source: Artemis
By contrast, spot investors on centralized exchanges continued to accumulate. CoinGlass data revealed that as of press time, investors spent $3.11 million buying PUMP, following $35.85 million in purchases during the week ending October 27.
This divergence highlights the uncertainty in near-term sentiment, but also indicates where liquidity could rotate next.
Revenue falls slightly amid cautious optimism
Pump.fun’s total revenue fell slightly to $1.4 million, down from $1.5 million on October 31. Still, cumulative monthly revenue reached $41.9 million, while protocol fees totaled $84.7 million, keeping the network’s health intact.
On top of that, CoinGlass settlement data revealed dense liquidity bands above the 0.0044-0.0046 range in the PUMP/USDT pair.
Historically, these groups acted as magnets for short-term rallies as prices moved to fill those gaps.
Source: CoinGlass
This setup supports a cautiously bullish short-term view. The recent sell-off appears more corrective than structural, suggesting PUMP could stabilize before attempting a broader recovery.
