Pump.fun’s native token PUMP officially began trading, opening at a fully diluted valuation (FDV) of $5.6 billion, after a whirlwind initial coin offering (ICO) that sold out in under 12 minutes.

Around eight hours into public trading, the token had a volume of $50.5 million on Solana, split evenly between buys and sells, as per data from DEX Screener.

As of 6:30 am ET, PUMP was changing hands at around $0.0058, which means investors in the ICO are sitting on a ~25% profit.

On decentralized perpetual exchange Hyperliquid, the funding rate had flipped positive after opening in the red, implying that traders had started betting on a higher price after initially shorting the token. 

This story is an excerpt from the Unchained Daily newsletter.

A positive funding rate typically occurs when there is high demand for long positions, causing the futures price to trade above the spot price.

Perpetual volume for PUMP on Hyperliquid crossed $728 million, while spot trading volume for PUMP hit the $100 million mark.

“At current market cap and FDV, PUMP revenue returned to token holders (25%) is higher than HYPE, AAVE, and RAY buybacks as a % of supply,” wrote Arete Capital analyst @Daveeemor on X. 

“The token also trades at the lowest multiples based on both total revenues and revenues to token holders.”