- SOL dropped to $156.50 after Pump.fun revealed a $1B token sale plan, sparking sharp volatility and trading volume surges.
- Pump.fun’s $1B raise at a $4B valuation highlights its dominance in Solana’s memecoin space and its growing market influence.
- Despite a partial rebound to $157.58, SOL remained volatile as traders evaluated the impact of Pump.fun’s ambitious expansion plans.
Solana’s native token, SOL, experienced a sharp intraday drop on June 3, 2025, following major news involving Pump.fun. The price fell quickly from $161.00 to a session low of $156.50 after reports surfaced about the memecoin platform’s $1 billion token sale. The sudden announcement triggered intense market activity, pushing SOL into a volatile trading session. Although partial recovery occurred later, the initial shock led to significant price fluctuations and heavy sell pressure.
The news, first reported by Blockworks, revealed Pump.fun’s plan to raise $1 billion at a $4 billion valuation. This ambitious move comes as the platform continues to dominate Solana’s memecoin landscape. It remains unclear when the token launch will take place, but the market reaction was immediate and dramatic. Consequently, SOL opened near $161 and entered a steep decline starting around 19:30 UTC.
Trading Action and Volume Dynamics
SOL’s downward move coincided with a notable spike in trading volume. Red candlesticks appeared alongside large volume bars, signaling strong selling momentum. Between 20:00 and 20:15 UTC, SOL bottomed at $156.50 before stabilizing. This zone acted as short-term support.
Source: Satoshi Club
However, buying interest slowly returned after 20:30 UTC. A modest rebound followed, lifting SOL to a closing price of $157.58. This marked a slim 0.01-point uptick from its previous session level. Despite the recovery, SOL remained well below its session high.
The price action formed a wide intraday range. Support emerged near $156.50, while resistance took shape at $158.50. Market sentiment remained cautious, with traders assessing the longer-term implications of Pump.fun’s capital raise.
Pump.fun’s Expanding Influence on Solana
Pump.fun has rapidly transformed into a core driver of Solana’s memecoin economy. The platform allows users to launch tokens quickly via a bonding curve model. Initially, tokens reaching a $69,000 market cap moved to Raydium.
However, Pump.fun recently launched PumpSwap, its own trading protocol. Raydium retaliated with a competing tool, LaunchLab. Moreover, Pump.fun reactivated its controversial live-stream feature, despite earlier moderation concerns.
The platform once generated $7 million daily but now averages around $1 million. Still, its latest token plans suggest broader ambitions. Hence, SOL holders must stay alert as memecoin-driven volatility continues to shape price dynamics.
