Data Shows Bots Inflating Volume on Pump.fun, Raising Manipulation Concerns

Data from Dune shows a hidden manipulation layer using trading bots on the Solana meme coin launch platform Pump.fun, which is booming.

Pump.fun pioneered the Solana meme coin market. However, competing launch platforms are emerging, and the market will face increasing competition over time.

Bot-Driven Volume on Solana's Pump.fun Tokens?

Analysts describe how "Proxy" is flooding the Pump.fun token market with volume trading bots. High-frequency trades seem to artificially create momentum to exploit investors' fear of missing out (FOMO).

On-chain data, tracking active bots, shows these bots acting like standard market participants. Specifically, they execute dozens of small trades on newly launched tokens, often within seconds, creating an illusion of sudden interest.

Based on the data, these bots generate 60–80% of trading volume on some Pump.fun tokens.

The result is a self-reinforcing feedback loop, where artificial volume stimulates real FOMO. This drives prices up, which bots can exploit to exit liquidation.

DeFi researcher Naveen, in a post on X (Twitter), calls this practice the "Proxy Paradox." He cites broader impacts, noting that this practice artificially distorts market signals and undermines the reliability of volume-based indicators. Moreover, it can lead to unsustainable price volatility.

However, for some, the increase in bot-driven trades is a stress test for Solana and adds temporary liquidity. Meanwhile, critics warn that it threatens the long-term health of the ecosystem.

Sustainability Concerns Behind the Meme Coin Frenzy

Elsewhere, the meme coin sector is evolving. Pump.fun, once Solana's leading launch platform, is gradually losing its position.

BeInCrypto has reported that the platform's market share is declining amid increasing competition from new launch platforms. LetsBonk has gained momentum by offering faster listings, better user interaction, and broader developer participation.

This development occurs at a volatile but important time for the Solana ecosystem. According to Solana's Q1/2025 report, network revenue surged while transaction fees decreased, indicating improved efficiency.

However, DeFi's TVL declined, raising concerns about sustainability beneath the meme coin frenzy. These findings serve as a wake-up call for both traders and developers.

"Not all volume = real demand. Next time you see volume exploding on new meme coins, ask yourself: Is this exaggeration... or Proxy farming?" the analyst warned.

As the Solana meme coin ecosystem matures, transparency and smarter system design will be crucial. Volume farming bots may temporarily boost metrics. However, long-term sustainability requires data instead of deception.

Solana's infrastructure is under pressure, and competition among launch platforms is increasing. Therefore, the race to launch the next token while ensuring its underlying system remains reliable is ongoing.