- Pumpfun launched a $3M community-driven investment fund for crypto startups.
- PUMP price rose despite broader market weakness.
- XRP lost key support, with on-chain data signaling further downside risk.
Pumpfun is pushing deeper into crypto startup funding just as broader market weakness weighs on major assets like XRP. The memecoin-focused platform has unveiled a new investment initiative aimed at backing early-stage projects within its ecosystem, a move that briefly lifted its native token even as the wider market struggled.
Meanwhile, XRP’s recent rally has stalled, with on-chain data pointing to growing downside risk after the token failed to hold above a critical psychological level.
Pumpfun Unveils “Pump Fund” to Back Community Startups
In a recent announcement on X, Pumpfun revealed the launch of Pump Fund, a new investment arm designed to finance crypto-native startup projects built by its community. The initiative will begin with a hackathon-style program that plans to distribute $3 million across 12 projects.
Unlike traditional accelerator models, Pumpfun’s approach shifts decision-making away from venture capital committees. Instead, users within the ecosystem effectively determine which projects succeed by backing them early through token launches. Each participating team will create its own native token and retain control of roughly 10% of its total supply, encouraging long-term alignment with their communities.
The move builds on Pumpfun’s earlier liquidity support efforts, which helped stabilize several volatile memecoin projects. Since launch, the platform has facilitated millions of token creations and generated substantial fee revenue, cementing its position as a major player in the sector.
PUMP Token Rises Despite Market Pressure
Following the announcement, PUMP gained nearly 3% in 24 hours, outperforming a broader market that has remained under pressure. The token has also benefited from ongoing buybacks, with the team having repurchased around $250 million worth of PUMP, reducing circulating supply by more than 19%.
Analysts note that recent changes to Pumpfun’s creator fee model have also improved sentiment, encouraging higher platform activity.
XRP Loses Momentum as On-Chain Signals Turn Bearish
While Pumpfun gained attention, XRP slipped below $2, a level widely seen as a key psychological support. According to on-chain analytics, the current market structure resembles patterns seen before XRP’s sharp 2022 decline.
Data shows short-term holders accumulating below the cost basis of longer-term investors, increasing pressure on those who bought higher. Whale flows remain negative, and derivatives markets reflect cautious sentiment, with futures open interest falling across major exchanges.
Analysts warn that failure to hold the $1.80–$1.85 zone could open the door to further downside, though some traders still see tactical buy-the-dip opportunities if support holds.
Also Read: Chainlink and XRP Hit Decision Zones — Breakout or Breakdown Next?
Pumpfun’s expansion highlights how ecosystem-driven innovation can still attract capital, even during market downturns. In contrast, XRP’s struggle underscores the fragile sentiment surrounding large-cap altcoins as psychological support levels give way. Together, the developments reflect a market increasingly split between niche growth stories and broader risk aversion.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
