The native token of Solana-based meme coin platform Pump.fun surged nearly 20% on July 16, briefly reaching a new all-time high following the launch of a large-scale buyback campaign.
After reaching a high of $0.00681, PUMP is trading at about $0.0063 at the time of writing, up about 14% on the 24-hour timeframe. The rally was driven by news that Pump.fun has begun buying back tokens using platform-generated fee revenue.
According to on-chain data shared by Lookonchain, the platform allocated 187,770 Solana (SOL), worth about $30.6 million, from its fee reserves to fund the buyback. So far, 118,351 SOL, about $19.26 million, has been spent acquiring roughly 2.99 billion PUMP tokens at an average price of $0.0064.
The buyback appears to be part of an effort by Pump.fun to stabilize its token after a volatile start. Following its public sale, which raised $600 million in just 12 minutes by selling 15% of the token supply, PUMP debuted on major exchanges with a fully diluted valuation of $4 billion. However, due to significant profit-taking by early investors, the token rapidly fell more than 40%.
Market sentiment is now cautiously optimistic as a result of the buyback, which has reignited interest in the token despite its rocky debut. Some analysts continue to question the move’s sustainability, while others interpret it as a show of confidence from the Pump.fun team.
Critics have pointed to the token’s limited utility, as PUMP offers no governance, staking, or revenue-sharing mechanisms. They argue that without addressing structural flaws, the buyback might only serve to prop up the price.
The buyback launch comes as competition heats up in the memecoin launchpad space. A competitor platform, LetsBonk, recently overtook Pump.fun in terms of daily launchpad volume and token graduation rates. Pump.fun’s own metrics have also declined, with platform volume dropping from $11.6 billion in January to $3.65 billion in June, as per DefiLlama data.
In an effort to regain its dominance, Pump.fun has acquired analytics platform Kolscan and implemented time-weighted average price buyback strategies funded by fee wallets. For now, the market appears to be responding positively to these efforts.
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