On July 17, Three Arrows Capital founder Zhu Su published a market view stating, "Pump.fun's TGE boosted SOL's rise" for the following reasons:
Pump.fun itself does not hold a large amount of SOL, so it will not cause price pressure by selling SOL, eliminating market concerns about "selling risks";
The market misunderstands Pump.fun's SOL selling, as users typically buy SOL in dollars, participate in Pump.fun transactions, and pay SOL fees, while the platform subsequently converts SOL back to dollars. This model is just a regular consumer business process and will not directly lead to a drop in SOL price;
Pump.fun's high income in the Solana ecosystem (such as a monthly revenue of $106 million in November) has attracted more market attention, highlighting Solana's potential as a high-performance blockchain. This not only attracts more developers to build projects on Solana but may also drive a re-evaluation of SOL as an investment-grade consumption protocol;
Solana ecosystem investors participating in Pump.fun's initial token offering tend to reinvest their profits into SOL after gaining, further driving up its demand and price.
