After a terrible start to its launch back in July this year, the PUMP token has finally found its spark, managing to lead the recent market recovery. The Pump.Fun native token rose by over 140% over the last month, featuring prominently at the top of the gainers’ list during this time. A slowdown has since rocked the altcoin after this, but it may not be the end of the story.
Pump.Fun Surpasses Hyperliquid In Daily Revenue
In an interesting turn of events, Pump.Fun, the native platform behind the PUMP token, has overtaken Hyperliquid in terms of daily revenue. Hyperliquid, an on-chain perps trading platform, has been the third-highest on-chain revenue generator, right behind stablecoin issuers Tether and Circle.
Related Reading
This meant that Hyperliquid was the number 1 decentralized finance (DeFi) platform and non-stablecoin issuer in terms of revenue, averaging over $2.5 million daily. Its high revenue generation was also instrumental in driving up the value of its native HYPE token. Part of its revenue went into token buybacks, pushing up demand for the altcoin.
However, with the recent development, Pump.Fun has now dethroned Hyperliquid, pushing it into the fourth position. PUMP now reigns at 3rd position, after recording $3.12 million in daily revenue, compared to the $3 million generated by the Hyperliquid platform for the same time period.
While Hyperliquid continues to lead over longer timeframes, such as weekly and monthly, the recent rise in the Pump.Fun revenue could have very bullish implications for its native token.
Why The PUMP Token Price Can Benefit From This
The rise in the Pump.Fun metric to flip Hyperliquid is bullish for the PUMP price in the fact that the platform also uses almost 100% of its revenue to actually buyback the token. This was highlighted by crypto analyst Kaduna in an X post, explaining that this could pump the price.
Related Reading
According to Kaduna, the PUMP token is still massively undervalued at a $2.8 billion market cap compared to HYPE’s $14.4 billion market cap. He also points out that the streaming service on the Pump.Fun website is just starting, something which is also bullish for the platform.
If the revenue continues and the buybacks are notable, then it is possible that the PUMP price is headed to new all-time highs. At the time of writing, the price is only sitting 30% below its $0.01214 all-time high that was recorded back in July.
Featured image from Dall.E, chart from TradingView.com
