According to Miles Deutscher, while Pump Fun offers skilled traders opportunities to profit, the broader impact on the crypto market is negative due to increased dilution, faster token rotations, and a rising number of retail investors suffering losses, leading to decreased user participation and liquidity. Deutscher highlights that most traders are not actively managing positions, and the indirect effects such as frequent listings and rapid market changes discourage long-term holders, affecting overall market stability and trading strategies (source: @milesdeutscher on Twitter, June 4, 2025).

According to MilkRoadDaily, understanding key factors such as token dilution, unlock schedules, inflation rates, and value capture mechanisms is essential for crypto traders aiming for long-term profitability. The source emphasizes that the majority of tokens do not yield significant returns, and highlights the importance of analyzing these metrics before making investment decisions. Their PRO members utilize structured frameworks to evaluate tokenomics, helping them anticipate market moves during major unlock events and periods of high inflation, which can impact token price and liquidity (Source: Milk Road Twitter, May 15, 2025).