Liquidity on Pumpfun is currently facing allocation issues.
Instead of focusing heavily on first movers, it is being fragmented into too many narratives.
This makes the formation of "mega runners" much more difficult.
In the previous phase, when the barrier to entry existed, the market tended to consolidate liquidity around leading projects.
As long as there was one first mover with a strong enough narrative, it could attract both capital and mindshare.
From that, we witnessed real PVE phases — the community fighting together against the market, rather than just competing against each other.
But now, with the barrier to entry almost at 0, anyone can launch a coin.
The result is hundreds of projects being created at the same time, each project attracting a bit of liquidity.
The mentality of KOLs and traders has also changed: they are looking to corner supply quickly and exit early, rather than building long-term narratives.
This mechanism creates a market leaning more towards PVP than PVE.
Traders competing against traders, fighting for every bit of liquidity, instead of pushing a single large narrative together.
That is not wrong, but it causes the overall momentum to be nullified.
The core issue: there is only a limited amount of liquidity to circulate.
When it is dispersed, no project has enough strength to become a leading "runner".
If we want to truly restore PVE, a change in the behavior of KOLs, traders, and the platform itself is needed.
Instead of just focusing on coins that are easy to corner supply, the market needs to return to supporting first movers.
First movers are where attention converges, narratives are created, and the potential for generating mega runners exists.
Without this shift, Pumpfun will continue to witness small pumps and quick dumps.
This is a structural change in the market.
Instead of focusing heavily on first movers, it is being fragmented into too many narratives.
This makes the formation of "mega runners" much more difficult.
In the previous phase, when the barrier to entry existed, the market tended to consolidate liquidity around leading projects.
As long as there was one first mover with a strong enough narrative, it could attract both capital and mindshare.
From that, we witnessed real PVE phases — the community fighting together against the market, rather than just competing against each other.
But now, with the barrier to entry almost at 0, anyone can launch a coin.
The result is hundreds of projects being created at the same time, each project attracting a bit of liquidity.
The mentality of KOLs and traders has also changed: they are looking to corner supply quickly and exit early, rather than building long-term narratives.
This mechanism creates a market leaning more towards PVP than PVE.
Traders competing against traders, fighting for every bit of liquidity, instead of pushing a single large narrative together.
That is not wrong, but it causes the overall momentum to be nullified.
The core issue: there is only a limited amount of liquidity to circulate.
When it is dispersed, no project has enough strength to become a leading "runner".
If we want to truly restore PVE, a change in the behavior of KOLs, traders, and the platform itself is needed.
Instead of just focusing on coins that are easy to corner supply, the market needs to return to supporting first movers.
First movers are where attention converges, narratives are created, and the potential for generating mega runners exists.
Without this shift, Pumpfun will continue to witness small pumps and quick dumps.
This is a structural change in the market.