Pump.fun gained more than 4% during the past 24 hours after it deposited a massive amount of PUMP tokens to a popular exchange, enhancing the token’s liquidity.
In an altcoin-conducive environment where the Altcoin Season Index (ASI) shifted from last month’s 53 to 70, the memecoin launchpad, Pump.fun, made a massive 13 billion PUMP deposit worth about $74.24 to crypto exchange Kraken.
What does this PUMP token liquidity mean?
In simple terms, liquidity refers to how easy it is to convert a token into cash without affecting its price significantly. When a massive amount of PUMP is injected into the exchange, it increases the supply, enhancing buying and selling.
Why is the PUMP token pumping with the deposit?
PUMP wants to reach a few goals on its to-do list by depositing 13 billion into a well-known exchange that is known for being safe, compliant, and having a large database.
Make it easier for more people to access: When there are more tokens available on the exchange, more people can use them. PUMP will use Kraken’s users.
Brings in new traders: A market with high liquidity is a sign of a healthy market, which brings in more traders.
Exchanges, payment platforms, and crypto funds often look at a token’s liquidity profile before getting involved. This helps the token grow in the future. Pump.fun is making it easier for future partnerships, listings, and product launches by increasing liquidity now.
As PUMP is surging, many investors are feasting on this opportunity. A crypto trader who goes by the pseudonym Nehal stated that a private investor who spent $10M to buy 2.5B PUMP started selling PUMP to take profits.
