- The PUMP token surged nearly 20% after Pump.fun launched a $30 million buyback campaign aimed at stabilizing the token and boosting investor confidence.
- Despite challenges, the buyback reignited market interest and showed the team’s strong commitment to the project.
PUMP, the native token of Solana-based meme coin platform Pump.fun, soared nearly 20% on July 16 following the announcement of a large-scale buyback initiative. This strategic move briefly pushed the token to a new all-time high of $0.00681 before settling at around $0.0063—a 14% gain within 24 hours.
Buyback Campaign Boosts Market Confidence
According to on-chain data from Lookonchain, Pump.fun committed 187,770 SOL (valued at approximately $30.6 million) from its fee-generated reserves to fund the buyback. So far, 118,351 SOL—worth roughly $19.26 million—has been used to repurchase about 2.99 billion PUMP tokens at an average price of $0.0064.
Pumpfun(@pumpdotfun) prepared 187,770 $SOL($30.6M) in fee revenue to buy back $PUMP.
So far, the buyback wallet has spent 118,351 $SOL($19.26M) to buy 2.99B $PUMP at an average price of $0.0064.https://t.co/P1uqlkfdx6 pic.twitter.com/3chMjzkPsj
— Lookonchain (@lookonchain) July 16, 2025
This buyback strategy appears aimed at stabilizing the token, which saw a turbulent debut after raising $600 million in just 12 minutes during its public sale. Despite an initial fully diluted valuation of $4 billion, PUMP experienced a steep 40% decline due to heavy sell-offs from early investors.
Mixed Reactions from Analysts and Critics
While the market has responded with cautious optimism, some analysts remain skeptical. Critics argue that PUMP’s lack of real utility—offering no governance, staking, or revenue-sharing—makes the buyback a short-term fix rather than a sustainable solution. Still, others view the buyback as a strong signal of commitment from the Pump.fun team.
Facing Competition and Declining Metrics
Pump.fun is also feeling the pressure from rising competitors. LetsBonk, a rival memecoin launchpad, has recently surpassed Pump.fun in daily launchpad activity and token graduations. Platform volume for Pump.fun has plummeted from $11.6 billion in January to just $3.65 billion in June, according to DefiLlama.
In response, Pump.fun has taken additional steps to reclaim its lead. The acquisition of analytics tool Kolscan and the use of time-weighted average price (TWAP) strategies show the platform’s intent to adapt. These buybacks, funded by fee wallets, are currently helping restore market interest.
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