- Pumpfun’s Dynamic Fees V1 ties creator earnings directly to market capitalization growth.
- Early-stage coins gain higher fee revenue, while mature coins benefit from reduced costs.
- PUMP token shows bullish signs near $0.00385 but faces short-term volatility risks ahead.
Memecoin launchpad Pump.fun has just introduced “Project Ascend,” a sweeping upgrade featuring a new dynamic fee system designed to better reward creators without killing trading volume.
The higher the coin’s market cap, the lower the creator fee, which helps balance growth incentives for both creators and traders.
This is How the New “Dynamic Fees” System Works
The core of the upgrade is a new tiered fee system that balances the needs of coin creators with those of traders.
What is the core problem it solves?
Previously, creators struggled to fund their projects, as low fees didn’t cover marketing and development costs. However, simply raising fees across the board would have discouraged the high-volume trading that the platform relies on.
Related: Pump.fun Sends 13.75 Billion PUMP Tokens to Wintermute, Price Craters 22%
How are the new fees structured?
The new Dynamic Fees V1 system solves this by tying creator fees to market capitalization. Early-stage coins will generate higher fee revenue for their creators, giving them the funding they need to grow. As a coin’s market cap increases, the fee rate decreases, reducing the burden on traders and encouraging long-term liquidity.
Related: Pump.fun Sends 13.75 Billion PUMP Tokens to Wintermute, Price Craters 22%
What was the immediate price impact on the PUMP token?
While the upgrade is a long-term bullish catalyst, the immediate price action for the native PUMP token remains mixed.
Key support and resistance levels
The PUMP token is currently trading around $0.003856, showing a 3% rise in 24 hours. The price is testing immediate resistance at $0.00385, with support holding near $0.003745. A clean break above resistance is needed to confirm bullish momentum.
The trading volume surged 13% to $306.7 million, signaling stronger participation from buyers. Moreover, the market cap stands at $1.36 billion with 354 billion tokens circulating. These figures highlight robust activity, though investors remain cautious.
Related: PumpFun Battles to Retain Dominance as Solana Launchpad Competition Heats Up
What are the momentum indicators showing?
Momentum indicators present a mixed picture. The RSI hovers at 47, suggesting neutral market conditions. Meanwhile, the MACD line lags below the signal line, hinting at lingering bearish pressure. Consequently, the current trend suggests consolidation before a decisive breakout.
What is the Long-Term Forecast for PUMP?
The long-term outlook for PUMP will depend on whether this new upgrade can successfully attract and retain high-quality projects and communities.
Coincodex analysts forecast a potential decline toward $0.003033 by September 2025, with a trading range between $0.002672 and $0.003794. This outlook reflects near-term uncertainty, but the introduction of Dynamic Fees could fuel long-term growth by attracting new talent and communities.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
