Pump.fun’s native token PUMP has shown surprising resilience this week, rising roughly 17% as the protocol uses platform fees to repurchase coins and support the market.
The project’s buyback program is designed to reduce circulating supply and absorb selling pressure — a mechanism many crypto projects are adopting to create orderly markets and signal commitment to holders. Still, buybacks are not a guaranteed price floor; they depend on continued fee income and favorable market liquidity.
At publication, PUMP was trading at $0.0035, about 40% higher than a month ago but still roughly 50% below its July debut peak. The token plunged from $0.007 to $0.0024 within 10 days after launch as early hype cooled, and the recent rally shows buybacks can help stabilize prices after volatile listings.
The engine behind the repurchases is Pump.fun’s fee model. The platform collects fees whenever a new token is created through its service — activity that has been significant: Dune analytics indicate roughly $734 million flowed through the platform over the past year, with volume spikes in January during a meme-coin surge. Since launch, Pump.fun has facilitated the creation of more than 12.5 million tokens and logged interactions from about 23 million wallets.
Those fees have translated into buyback capital: public dashboards show Pump.fun has allocated about $59 million to repurchase PUMP so far. That cash deployment appears to be a core factor underpinning the token’s rebound, even as broader digital-asset markets remain soft.
Seasonality may also help — autumn historically brings stronger crypto activity after a summer slowdown — but the token’s path still hinges on whether fee revenue holds up in a cooling market and whether buybacks can outpace selling pressure.
Macro context: major assets are under pressure this week, with bitcoin around $108,500 and ether near $4,337, both off about 6–7% over seven days.
Risk note: PUMP remains volatile. Buybacks can support price but do not eliminate downside risk; prospective buyers should weigh liquidity, project fundamentals, and the possibility that fee income could drop.
Source: CoinDesk. Read the original coverage for full details.