Pump.Fun's Buybacks Drive PUMP Token Resurgence Amid Legal Storm

Pump.fun has allocated over $62 million to repurchase its native token, PUMP, absorbing approximately 16.5 billion tokens in a strategic move to stabilize the token’s price and reduce sell pressure. These buybacks, funded by platform-generated fees from memecoin launches, have averaged between $1.3 million and $2.3 million per day over the past week, according to Dune Analytics data. This initiative follows a broader pattern of the platform leveraging its revenue to support token value. Since its inception, Pump.fun has generated over $775 million in total revenue, primarily from fees incurred when users deploy new tokens on the platform.

The token buyback strategy appears to be yielding positive results. PUMP has recorded a 12% increase over the past month and a 9% rise in the last week, with the token currently trading at $0.003522, up 54% from its August low of $0.002282. This price rebound is partly attributed to the absorption of tokens from circulation, reducing overall market pressure. The platform has also seen growing user participation, with the number of unique PUMP holders surpassing 70,800. Notably, 46% of the total distribution is now held by smaller wallets, indicating a broadening base of retail engagement and decentralization of token ownership.

Despite these gains, Pump.fun faced a significant challenge in July, when a competing Solana memecoin launchpad, LetsBonk, temporarily claimed the top spot in 24-hour revenue rankings. During that period, Pump.fun's weekly revenue dropped to its lowest in over 10 months, reaching just $1.72 million. However, recent data indicates that Pump.fun has reclaimed its dominant position. Over the last seven days, the platform has captured a 73% market share with $4.5 billion in trading volume, significantly outpacing LetsBonk, which now holds under 9% of the market with $543 million in volume.

The platform's recent resurgence has also been reflected in PUMP's performance. The token's 17% rise this week aligns with Pump.fun's market share recovery, with the platform now leading in daily token deployments. Pump.fun launched 18,446 new tokens in the last 24 hours, dwarfing the 4,342 tokens launched by LetsBonk. These figures highlight the platform's ability to retain user interest and maintain activity in a competitive space. Furthermore, the buyback program has supported retail confidence, with PUMP's price stabilizing after a sharp decline in early July.

However, Pump.fun continues to navigate legal challenges. A class-action lawsuit filed in January alleges the platform engaged in “unlicensed casino” activities, with plaintiffs claiming $5.5 billion in investor losses. While the platform has taken legal action to defend itself, the case remains ongoing and could impact future operations. Additionally, the platform faces volatility inherent to the memecoin market, as over 60% of traders reported losses in August. These factors underscore the importance of sustained revenue generation and continued user adoption for Pump.fun to maintain its position.

Source: [1] Pump.fun spends over $62M on buybacks to boost PUMP ... (https://cointelegraph.com/news/pump-fun-62m-buybacks-pump-token-price) [2] Pump.fun Buybacks Fuel PUMP Token Revival Amid ... (https://www.coindesk.com/business/2025/08/29/pump-fun-buybacks-fuel-pump-token-revival-amid-broader-crypto-downturn) [3] Pump.fun (PUMP) Price Prediction: Token Surges 50 ... (https://parameter.io/pump-fun-pump-price-prediction-token-surges-50-following-buyback-program/) [4] PUMP price jumps 13% as Pump.fun reclaims top ... (https://crypto.news/pump-price-jumps-13-as-pump-fun-reclaims-top-launchpad-spot/)