Pump.fun, a Solana $201 -based memecoin platform, recently brought the PUMP token back into the spotlight through aggressive buybacks. These strategic maneuvers have bolstered traders’ confidence in the project and heightened optimism that PUMP can remain central to Solana’s retail activity.
Buybacks Fuel Price Recovery
In August, Pump.fun conducted buybacks exceeding $62 million for the PUMP token. Remarkably, during the week of August 20-26 alone, over $10.66 million, accounting for more than 99% of the platform’s weekly revenue, was allocated for buybacks.
Additionally, in the first two weeks of the month, purchases amounting to $19.26 million led to the acquisition of approximately 3 billion tokens, reducing the circulating supply by nearly 1%. The total buybacks have covered over 4.2% of the entire supply to date.
Each buyback reduces selling pressure and demonstrates to investors that the platform supports its token with its own revenue. This approach has led to a more than 30% increase in PUMP’s price over the past month from its lows at the end of July.
These efforts are reflected in market capitalization as well. After a steep decline in mid-July, PUMP has surpassed the $1 billion mark again and is currently around $1.29 billion. Its fully diluted market cap exceeds $3.6 billion, highlighting the platform’s long-term potential.
With a 24-hour trading volume surpassing $335 million, PUMP exhibits strong liquidity even as other DEX volumes on Solana fall. These statistics position Pump.fun as one of the most active and profitable applications on Solana.
Pump.fun Dominance Attracts Traders
Pump.fun’s rise is driven not only by buybacks but also by a resurgence in market share. At the start of August, the platform accounted for 11% of Solana’s coins, and within weeks, this percentage soared past 90%, settling around 62%.
The daily active user count has exceeded 38,000, far outstripping competitors like LetsBonk. Additionally, projects such as $TROLL, which gained 250%, fuel Pump.fun’s speculative energy. The creation of over 293,000 tokens in just two weeks underscores the immense attention it garners among individual investors.
Positive Technical Outlook
Technically, PUMP is signaling upward momentum by rising above its short-term moving averages. Indicators like RSI and MACD also point to further gains. Currently priced at $0.003625, it approaches the resistance zone of $0.00375. Breaching this level could push the price above the $0.004 mark, seen before July.
However, uncertainties persist regarding the sustainability of intense buybacks, raising questions about the long-term perspective. Over half of the circulating supply is held by early investors. If sudden sales occur, the market could experience renewed volatility.
