Opinion: Pump.fun's TGE is a Positive for Bonk and Its Ecosystem

2025-07-08 20:00

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BonkFun's continued dominance is positive for the meme coin market and the trench ecosystem, as it reduces the selling pressure on $SOL and increases market activity through the purchase of $BONK, creating a positive market cycle.

Original Author: Unipcs (aka 'Bonk Guy')

Original Translation: Deep Tide TechFlow

Recently, many people have asked me about my opinion on the Pump.fun TGE (Token Generation Event) and its $PUMP token.

As this is one of the most anticipated TGE events recently, and many have started to compare it with BonkFun—after all, BonkFun has been gaining attention since surpassing Pump.fun—I thought it was necessary to organize my thoughts.

Here is my current understanding of the $PUMP token:

· They are reported to have raised $1 billion, with a valuation of $4 billion.

· Predictions from the market and the OTC trading market suggest that the token's valuation could reach $7 billion to $8 billion post TGE, with some trading institutions even believing its valuation could go as high as $10 billion.

So, what does this mean for $BONK, the BonkFun ecosystem, and the broader trenches (grassroots users) and meme coin market?

I have previously made some comments on X, believing that a $PUMP token valuation easily reaching $4 billion is reasonable.

I have also stated that it could easily rank among the top 10 to 15 major crypto projects.

These comments are based on Pump.fun's history and expected revenue compared to the valuations of other crypto projects.

However, at that time, I did not anticipate that BonkFun would surpass Pump.fun so rapidly and strongly.

That being said, here are my updated views:

1. I do not believe Pump.fun has been completely dethroned, but I do think BonkFun is likely to continue to hold an industry-leading position in the foreseeable future.

Here are my reasons:

· BonkFun's positioning of 'Supporting Creators / Supporting Users / Supporting the Solana Ecosystem' is its huge advantage.

· The strong support culture within the BONK ecosystem has gradually permeated into the token launched through BonkFun. This culture is difficult for other projects to quickly replicate.

· Pump.fun, as a tokenless protocol, once had tremendous momentum, especially in anticipation of its TGE and potential airdrops. However, in the days or weeks leading up to the TGE, it was overtaken by BonkFun in a strong manner. It is hard to imagine it being able to sustain its previous market share post-TGE.

· While all launch platforms have been plagued by bot issues, I believe a significant portion of Pump.fun's activity comes from those active power users and bots who engage in trading actively to gain profits while awaiting airdrops. After all, Pump.fun used to be the most profitable protocol in the crypto space, so this phenomenon is to be expected. However, I think this activity will slow down or stop post-TGE as the incentives have ended.

· All these factors make BonkFun's growth even more impressive! Its growth is entirely organic and driven by its close integration with the Solana ecosystem, without any token or incentive commitment or expectation—because the $BONK token existed before the BonkFun launch and it has always been stated clearly that platform fees will be used for BONK buyback and burn.

· It is worth noting that much of BonkFun's growth stems from its rapid adoption globally, especially its association with key community cultures. For instance, the widespread acceptance of BonkFun in the Chinese market has made it a top launch platform in the region, attracting a large user base to Solana and launching a record number of tokens on it, far surpassing other blockchains. This is one of BonkFun's core strengths and a field of sustained growth— an area that many may still not fully recognize the importance of.

In addition, this has not yet taken into account some strategic moves that BonkFun may take in the future.

Overall, I believe BonkFun has already taken a strategically advantageous position and is poised to maintain a leading position in the launch platform space in the long term, of course, this also requires smooth execution!

I admit, Pump.fun may make some interesting announcements before its TGE, attempting to regain market share... but even so, I believe its impact will be short-lived.

2. PUMP's TGE is a bullish catalyst driving the development of $BONK, BonkFun, and the BonkFun ecosystem.

Many have been hyping the upcoming $PUMP TGE as an event that will drain meme coin and trench capital, as well as bonk the liquidity out of the BonkFun ecosystem.

If the TGE had occurred 1-2 weeks ago, this statement might have held some water, but I believe the future is not so.

For BonkFun to have surged so strongly past Pumpfun at this close proximity to the TGE is a decisive victory that will temper the market's frenzy around $PUMP and prevent a liquidity drain of meme coin and trench capital. Given the recent market backdrop, a wholesale sell-off of high conviction assets to rotate into $PUMP seems patently illogical.

Increasingly, it is becoming clear that the real $PUMP TGE trade is actually $BONK and the BonkFun ecosystem...

While the tokenomics of $PUMP remain very opaque, and we know little about the specifics, here are a few points we do know:

· 50% of BonkFun's fees are used to purchase and burn $BONK tokens.

· A total of 58% of BonkFun's fees are used in some form to purchase $BONK tokens.

I cannot predict what the final tokenomics of $PUMP will look like, but I find it hard to see how it could be more competitive than BonkFun's current model.

Especially considering that Pump.fun, having raised $1 billion and reached a $4 billion valuation, is still an extremely profitable business (earning nearly $1 billion in the past year and a half!).

Therefore, I believe the real $PUMP TGE trade is $BONK and the BonkFun ecosystem:

If $PUMP raises funds at a $4 billion valuation and is assessed by third parties to be valued as high as $10 billion, then considering the recent market dominance of $BONK and its sustained future dominance potential, how much should $BONK be worth?

More importantly, BonkFun is just one of many ecosystem products, all of which are adding buying and burning pressure to $BONK.

At $BONK's current $1.8 billion market cap, it is clearly severely undervalued.

If I were a rational investor, I would consider that in the current environment, buying a $BONK with a market cap of 1.8 billion USD would potentially yield a higher investment return compared to buying a $PUMP with a valuation of 4 billion USD or higher.

I also believe that the BonkFun ecosystem will attract more buying interest and rapidly reprice in the current context, moving towards a higher valuation.

Furthermore, this analysis does not take into account the possibility that Pump.fun may lose momentum and market share post TGE, being more significantly surpassed by BonkFun.

4. The continued dominance of BonkFun is a huge plus for the meme coin market and the trench ecosystem.

Many industry insiders firmly support BonkFun over Pumpfun primarily because Pump.fun is seen as too "predatory."

This predatory reputation mainly stems from their selling of a large amount of $SOL and their ongoing sell-offs (amounting to billions of USD!).

The success of meme coins and on-chain activity is closely tied to the price movements of native blockchain tokens, such as $SOL on the Solana chain.

If the price of $SOL continues to rise or remains relatively stable, it will have a positive impact on the trench ecosystem and on-chain activity, as more individuals become interested in participating in meme coin "casinos."

This implies that the prices of major meme coins will be more stable, newly launched low-cap meme coins will have stronger bottom support, and it will spark the creation of more meme coins and narratives.

In this regard, BonkFun aligns perfectly with this trend:

· 15% of the fees generated by BonkFun are staked in $SOL at the BONKSol validation node. This not only reduces the selling pressure on $SOL but also contributes to the network's security by staking a significant amount of tokens as a validation node.

· 58% of the fees generated by BonkFun are used to buy $BONK. Those familiar with the meme coin market know that "dogs move in packs," meaning the sustained rise of a strong meme coin will drive other large-cap meme coins and ignite speculative enthusiasm in the market, leading to the launch of more new meme coins and narratives.

Therefore, in this scenario, BonkFun has reduced the sell pressure on $SOL while propelling $BONK to an incredible valuation through more aggressive buybacks and burns.

The more frequently this phenomenon occurs, the more vibrant the trench ecosystem becomes, and the market's speculation strengthens, creating a flywheel effect or cycle.

You can call it the "Bonk Wheel" or "Bonk Cycle," the name doesn't matter, but the core logic is evident!

I'm not sure how to articulate it better, but undoubtedly, BonkFun emerges as a clear, ultimate, and decisive winner, setting the best course for the trench ecosystem and memecoin market—whether or not you hold any tokens in the BonkFun ecosystem.

In conclusion...

BonkFun's latest success has ensured one thing: what was originally highly anticipated and thought by many to potentially drain funds from the memecoin market and trench ecosystem in the $PUMP TGE has transformed into a potential positive catalyst. A significant amount of funds will flow into $BONK and the BonkFun ecosystem around the TGE, further driving the prosperity of the trench ecosystem.