Solana News Today: Pump.fun's PUMP Exposes Memecoin Model's Sustainability Crisis

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Pump.fun’s native token PUMP has captured attention with a 2-week high that initially appeared to signal bullish momentum. However, deeper analysis reveals a complex narrative shaped by declining buybacks, reduced trading activity, and intensifying competition. Open interest for PUMP surged by 9% to $675.17 million in early September, reflecting heightened speculative interest. Yet, this optimism has since faded as the platform’s revenue and buyback activity have plummeted. By late September, buybacks had dropped by 50% to $1.27 million, while revenue fell to $1.3 million, a 10-month low. These declines underscore weakening demand and liquidity, challenging the token’s ability to sustain its previous price trajectory.

The platform’s struggles are further compounded by a sharp drop in token graduations. In January 2025, 24,008 tokens reached the graduation threshold on Pump.fun, qualifying for listing on decentralized exchanges like Raydium. By February, this figure had halved to 11,532, with recent weekly graduations collapsing to as low as 517 tokens. The graduation rate—the percentage of launched tokens achieving sufficient liquidity—has fallen to 0.7%, a near-record low. This trend reflects broader market fatigue in the memecoin sector, where trading volumes for graduated tokens have returned to September 2024 levels.

Competition from platforms like LetsBonk has also eroded Pump.fun’s dominance. In July 2025, LetsBonk overtook Pump.fun as the leading Solana token launchpad, capturing 58% of daily token launches. By August, its market share expanded to 75%, while Pump.fun’s share dwindled to 15%. This shift is evident in trading volumes: LetsBonk processed $163 million in 24-hour volume compared to Pump.fun’s $200,000. The platform’s inability to retain users highlights the challenges of sustaining momentum in a crowded and volatile market.

Technical indicators for PUMP suggest a precarious outlook. The Relative Strength Index (RSI) recently dipped to 37 on the 4-hour chart, indicating oversold conditions. However, the 200-period Exponential Moving Average (EMA) at $0.0055 poses a near-term resistance, and a potential “Death Cross” pattern looms if the 50-period EMA falls below the 100-period EMA. A breakdown below the $0.0050 support level could accelerate the decline toward $0.0040, a critical psychological threshold.

Legal and operational challenges have further destabilized the platform. A class-action lawsuit alleges Pump.fun offered unregistered securities, while its X account was hacked to promote fraudulent tokens. These incidents, combined with regulatory scrutiny over intellectual property violations, have dented investor confidence. Meanwhile, the platform’s reliance on buybacks to prop up PUMP’s price has raised sustainability concerns. With daily buybacks now at $1.27 million—a 50% drop from mid-September—the model’s long-term viability is in question.

Despite these headwinds, some analysts argue that PUMP could stabilize if broader market conditions improve. The token’s price has held above $0.0050, and a rebound in Solana’s network activity could reignite demand. However, with trading volumes on Solana declining to $229 million from a $770 million peak, the ecosystem’s growth appears to be plateauing. For Pump.fun to regain traction, it must address structural weaknesses, including reduced user growth and declining revenue streams.