Pump.fun's PUMP Token Eyes 2-4 Fold Price Surge
The native token of Pump.fun, PUMP, has regained attention due to its revenue performance and low valuation multiple. According to Blockworks Research analyst Shaunda Devens, PUMP is undervalued based on revenue, with a potential increase of 2.3 to 4.4 times its current price. The analysis evaluated three different market scenarios: bearish, base, and bullish. In the bearish scenario, PUMP could fall to levels of $0.0011, $0.0019, representing a 50% to 75% drop from the current level.
The analyst stated that Pump.fun's annual revenue reached $677 million, while its price-to-sell ratio was only 2.8 times. Devens noted that Pump.fun is evolving from a platform where new tokens are launched into a broader consumer ecosystem where users conduct transactions. The platform's cumulative revenue since 2024 has reached $1.37 billion.
Devens emphasized that PUMP is highly sensitive to market activity and could experience significant value loss in a negative scenario. The analysis concluded that under three scenarios, PUMP could rise to between $0.0108 and $0.0205.