Analysis: Pump.fun has a large number of robots manipulating the market, creating false liquidity through high-frequency small-scale transactions

According to BeInCrypto, blockchain analysis platform Dune data shows that there are a large number of trading robots manipulating the market on Pump.fun, the Solana chain based Meme coin issuance platform. These robots create false liquidity through high-frequency small-scale trading, accounting for 60% -80% of some token trading volume, forming a "proxy paradox" phenomenon - false trading volume triggers FOMO sentiment among retail investors, which in turn pushes up prices for robots to cash out and leave. Analysts point out that such operations distort market signals and render volume based indicators ineffective. Although it may bring stress testing and temporary liquidity to the Solana network in the short term, it may harm ecological health in the long run. At the same time, Pump.fun is facing challenges from emerging competitors such as LetsBank, which are seizing market share with faster coin launch speeds and developer engagement. Solana's Q1 2025 report shows that despite the growth in network revenue and the decrease in transaction fees, the total lock up volume (TVL) of DeFi has declined, exposing sustainability concerns behind the Meme frenzy.