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Pumpfun’s Dynamic Fees V1 ties creators’ earnings directly to the growth of market capitalization.
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Early-stage coin revenue is higher, whereas mature coins have lower costs.
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PUMP token shows signs of bullishness near $0.00385 and faces short-term volatility risk ahead.
Pump.fun, the Memecoin launchpad, has just released “Project Ascend,” an upgrade that features a dynamic fee system to reward creators while not reducing trading volume.
The creator’s fee is lower the higher the market cap of the coin. This helps to balance growth incentives between creators and traders.
The New “Dynamic” Fees System Works
The upgrade’s core is a new fee system with tiers that balances the needs and wants of coin creators and traders.
What is the core issue it solves?
Previously, low fees did not cover the costs of marketing and development. But raising fees would have discouraged high-volume trading, which is the platform’s mainstay.
Related:Pump.fun sends 13.75 billion PUMP tokens to Wintermute and price craters 22%
How are the new fees calculated?
The new Dynamic Fees V1 solves this problem by tying creator fee to market capitalization. Early-stage coins generate higher fees for their creators. This gives them the funding needed to grow. As a coin’s value increases, the fee rate will decrease, reducing the burden for traders and encouraging long-term liquidty.
Related:Pump.fun sends 13.75 billion PUMP tokens to Wintermute and price craters 22%
The immediate price action of the native PUMP token is mixed.
Key Support and Resistance Levels
The PUMP token currently trades at $0.003856. This represents a 3% increase in 24 hours. The price is testing the immediate resistance at $0.00385, while support is near $0.003745. Bullish momentum will only be confirmed if the price breaks above the resistance.
The trading volume increased by 13%, reaching $306.7 million. This indicates a stronger participation by buyers. The market cap is $1.36 billion, with 354 billion tokens in circulation. These figures show a robust activity, but investors remain cautious.
Related:PumpFun Battles for Retaining Dominance as Solana Launchpad Competitors Heat Up
What are the indicators of momentum showing?
Momentum indicators paint a mixed picture. The RSI is hovering at 47, indicating neutral market conditions. The MACD line is below the signal line and suggests a lingering bearish trend. The current trend suggests that the market is consolidating before a breakout.
What is the long-term forecast for PUMP?
The future of PUMP depends on the ability to attract and retain high quality projects and communities.
Analysts at Coincodex predict a possible decline towards $0.003033 in September 2025. The trading range is between $0.002672 to $0.003794. This outlook reflects the near-term uncertainty. However, the introduction of Dynamic fees could fuel long-term expansion by attracting new talents and communities.
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