Pump.fun, the Solana-based platform for creating and trading meme coins, is making a significant effort to strengthen its native token, PUMP. The platform has announced a major buyback program, using over $10.6 million in revenue to purchase PUMP tokens between August 20-26, representing nearly all of its earnings during that period.
This recent buyback is part of a larger initiative launched in mid-July. So far, Pump.fun has spent over $58 million on PUMP tokens, reducing the circulating supply by approximately 4.26%. This places the project among the top networks for direct asset purchases and is intended to bolster investor confidence and create long-term demand.
For holders, this buyback program is a key sign of the team's confidence in the project's long-term vision. By consistently buying back and reducing the token supply, Pump.fun aims to:
However, the strategy is not without its skeptics. Some community members are focused on the lack of a planned airdrop, while others question whether the platform can sustain such large buybacks without consistent revenue growth.
Despite the significant buyback efforts, the price of PUMP has not yet recovered. The token is currently trading at $0.01557, having fallen by 28% in the past month and 40% in the last week. Technical indicators reflect this weakness, with the token trading below its 50 and 100-day EMAs.
While the low RSI indicates that the token is oversold and a reversal might be possible, market sentiment remains cautious. Ultimately, while buybacks are a positive sign, the project will need to attract steady demand from the community to see a full and lasting price recovery.
August 2025, Cryptoniteuae