Pump.fun Strengthens Liquidity and Security Measures Amid Growing DEX Activity
Pump.fun is currently testing an automated market maker (AMM) liquidity pool on its testnet. The platform aims to replace Raydium as its third-party liquidity supplier. According to blockchain researcher @trenchdiver101, this transition will enable a more efficient process for meme tokens to shift from Raydium to Pump.fun’s internal liquidity pool.
If successful, the new AMM could allow Pump.fun to retain a larger portion of transaction fees. Additionally, the system may introduce a reward mechanism for token holders. As meme tokens continue to dominate decentralized exchange (DEX) volumes, this development could provide the platform with greater control over its liquidity operations.
The decision to test an AMM coincides with a surge in meme token activity on decentralized exchanges. According to DeFiLlama data, Pump.fun has already processed over $500 million in total swap fees. Currently, around 1.4% of tokens launched on the platform eventually migrate to Raydium.
Despite these advancements, Pump.fun faces challenges in maintaining liquidity stability for coins not associated with pump-and-dump schemes. The platform is working towards organic growth by fostering sustainable meme communities with long-term potential.
Beyond liquidity improvements, Pump.fun has reinforced its security measures to prevent illicit transactions. Recently, the platform intercepted an attempt by a hacker connected to the $1.46 billion Bybit hack who sought to transfer stolen funds through its system.
On-chain investigator ZachXBT reported that the hacker was using Pump.fun to trade meme coins, a common strategy in money laundering schemes. By blocking these transactions, the platform demonstrated its commitment to maintaining security and integrity within its ecosystem.
Before Pump.fun intervened, the hacker had already transferred $1.08 million of the stolen funds across multiple blockchains, converting them into meme tokens. The attacker had launched a token named “QinShihuang” on Pump.fun, generating over $26 million in trading volume before their activity was halted
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Analyst Predicts ‘Boring Phase’ for Dogecoin Before Potential 700% Surge
Dogecoin (DOGE) traded relatively flat on Thursday, mirroring lackluster movements that have persisted since the beginning of the month.
Notably, attempts to recover last week, after prices rebounded from a flash crash to $0.20 earlier this month, have been watered down, with the top meme coin wiping out all of last week’s gains.
This silent price action comes amid a broader market trend. Further analysis reveals that key on-chain metrics, such as daily active addresses and transaction volumes, have remained relatively flat.
On-chain data also indicates a notable decline in whale activity. On Thursday, analyst Ali Martinez observed that large DOGE holders have adopted a “wait-and-watch” approach, with no significant buying or selling activity in recent days.
“Dogecoin DOGE whales have stayed on the sidelines during the recent volatility, showing little to no significant buying or selling activity,” Martinez tweeted, suggesting a cautious sentiment among major investors, which is contributing to the current price stability.
Nevertheless, amid this price lull, analysts continue to assess this period as “the calm before the storm,” actively predicting triple-digit percentage gains.
Popular crypto analyst Trader Tardigrade tweeted his outlook on Thursday, saying that Dogecoin has entered the “Boring Phase.” According to the pundit, traders should “Expect tight consolidation at the current level over the next few weeks before the massive DOGE rally.”
Notably, the chart accompanying his tweet compared Dogecoin’s recent flat trend in February 2025 to a similar pattern before a major rally in late 2017, suggesting DOGE may experience weeks of tight price consolidation before a significant upward rally if history repeats.
Earlier on Wednesday, the pundit also posted another analysis referencing Dogecoin’s weekly Stochastic RSI, a technical indicator that measures momentum. His analysis showed a crossover in the oversold zone, typically signaling a potential price rebound, supporting a bullish target of $1.50 per coin based on a target price inside an ascending channel.
Elsewhere, analyst Dima Potts predicted that Dogecoin could surpass $10, citing a historical pattern of peaks occurring every four years. He highlighted that the first cycle saw a 21,821% surge over 1,442 days, while the second followed the same timeline with an even greater 54,890% increase. Potts believes Dogecoin’s next peak could arrive around mid-April 2025 if this trend continues.
However, he also warned that DOGE would likely experience a decline before its next major rally.
“With recent price action, DOGE has maintained its historical pattern. I expect Dogecoin to gradually move toward the purple line or the $0.28 range, similar to previous cycles. Beyond this level, we should see increased volatility, with prices consolidating before pushing toward new yearly highs and eventually all-time highs.” He wrote.
At press time, DOGE traded at $0.24, reflecting a 2.13% drop in the past 24 hours.