PUMP Soars 20% as Pump.fun Triggers Buyback Frenzy—Traders Rush In

Pump.fun's native token PUMP just ripped past resistance—fueled by a surprise platform buyback. Here's why degens are piling in.

The Buyback Boost

No fancy economics here: Pump.fun burned tokens, supply shrank, and price rocketed. Classic crypto alchemy—works until it doesn’t.

Traders Chase the Green

A 20% surge in a single day? For a memecoin platform? Even Wall Street hedge funds might crack a smile (before shorting it).

The Fine Print

Buybacks pump prices—but sustainability? That’s the real trade. Meanwhile, the crypto casino spins another jackpot narrative.

TLDR

• PUMP token reached a $2.33 billion market cap and entered the top 65 cryptocurrencies by market capitalization
• The Pump.fun ICO sold out in 12 minutes on July 12, raising $600 million with potential total proceeds of $1.32 billion
• PUMP jumped nearly 20% on July 16 after the platform launched a buyback program using $30.6 million in fee revenue
• The token initially fell over 40% after its public debut due to profit-taking by early investors
• Competition from rival platform LetsBonk has increased pressure on Pump.fun’s market position

The native token of Solana-based meme coin platform Pump.fun experienced a sharp rally on July 16, climbing nearly 20% to reach a new all-time high. The surge brought PUMP to $0.00681 before settling at approximately $0.0063, representing a 14% gain over the 24-hour period.

The price movement was triggered by news that Pump.fun initiated a large-scale token buyback program. The platform allocated 187,770 solana tokens worth about $30.6 million from its fee reserves to fund the initiative.

On-chain data from Lookonchain shows that 118,351 SOL, valued at approximately $19.26 million, has been spent acquiring roughly 2.99 billion PUMP tokens at an average price of $0.0064. The buyback represents a direct intervention by the platform to support its token price.

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

PUMP currently maintains a market capitalization of $2.33 billion with only 35.4% of the total supply in circulation. The fully diluted valuation reaches $6.58 billion, positioning the token at 44th place by market cap on CoinMarketCap.

The token’s journey began with a successful initial coin offering that sold out in just 12 minutes on July 12. The public sale raised $600 million by selling 15% of the token supply, with combined proceeds from private sales potentially reaching $1.32 billion.

Despite the successful fundraising, PUMP experienced volatility following its exchange debut. The token launched with a fully diluted valuation of $4 billion but quickly fell more than 40% due to profit-taking by early investors.

Technical Analysis Shows Mixed Signals

Technical indicators present a mixed picture for PUMP’s short-term prospects. The 30-minute chart reveals a bullish outlook with the token successfully breaching the $0.006 resistance level, which then became support during a retest.

However, the Relative Strength Index showed a bearish divergence, making a lower high while PUMP’s price reached higher levels. This divergence coincided with a 2.7% retracement within an hour of its development.

The On-Balance Volume indicator pointed toward buyer dominance and sustained buying pressure. Open Interest increased by 8.85% over the past 24 hours, reaching $937.7 million according to Coinalyze data.

Platform Faces Competitive Pressure

The buyback initiative comes during a challenging period for Pump.fun’s market position. Competitor platform LetsBonk recently overtook Pump.fun in daily launchpad volume and token graduation rates.

Platform metrics show declining performance, with volume dropping from $11.6 billion in January to $3.65 billion in June according to DefiLlama data. The competitive pressure has prompted Pump.fun to implement strategic changes beyond the buyback program.

The platform recently acquired analytics platform Kolscan and implemented time-weighted average price buyback strategies funded by fee wallets. These moves represent efforts to regain market dominance in the memecoin launchpad space.

Critics have raised concerns about PUMP’s limited utility, noting the token offers no governance, staking, or revenue-sharing mechanisms. Some analysts question whether the buyback addresses underlying structural issues or merely provides temporary price support.

Market sentiment remains cautiously optimistic following the buyback announcement, with some interpreting the MOVE as confidence from the Pump.fun team. The platform continues to allocate fee revenue toward token purchases as part of its stabilization strategy.