Solana News Today: PUMP Token’s Buybacks Drive 40% Surge as Supply Shrinks 5.36%

Pump.fun, a dominant force in the Solana (SOL) memecoin ecosystem, executed a $12.19 million buyback of its native PUMP token between August 28 and September 3. The repurchase accounted for 98.23% of the platform’s weekly revenue, further demonstrating the project’s commitment to reducing circulating supply and reinforcing long-term price stability. With this latest move, total buybacks have now reached $72 million, resulting in a 5.36% reduction in PUMP’s circulating supply since the initiative began [1].

The buyback follows a similar $10.6 million repurchase the previous week and builds on a $33 million buyback in early August, which contributed to a 15% price rally. Analysts have attributed this sustained activity to a broader trend of institutional-scale engagement with the platform. Pump.fun currently holds a 77% market share in Solana’s memecoin launchpad sector, further solidifying its leading role in the ecosystem [2].

In tandem with its aggressive buyback strategy, Pump.fun introduced Project Ascend, a major update aimed at reshaping the platform’s fee structure. The first phase, Dynamic Fees V1, implements a tiered cost model that lowers fees for smaller-scale projects while rewarding long-term creators. The initiative is designed to increase returns for project creators by up to 10 times over time and encourage sustained activity on the platform [1]. The update has already contributed to a 14% price surge in PUMP following its announcement [2].

The impact of these strategic moves has been evident in PUMP’s recent price performance. The token surged by approximately 8% in the wake of the latest buyback, trading around $0.00432 on September 4. This upward movement occurred amid a broader market correction that reduced total crypto capitalization by 2.2%, highlighting the resilience of PUMP compared to many altcoins [2]. Over the past week, the token has risen 40%, reaching a price of $0.0045 with a market cap exceeding $1.62 billion [3].

The momentum has been further supported by increased whale activity and public figure engagement. Token holdings by whale wallets have grown from 21.95 billion on August 29 to 22.53 billion, while public figure holdings have risen by 8% over the same period [3]. This accumulation has likely spurred retail investor interest, contributing to the token’s upward trajectory. PUMP’s price action also aligns with technical indicators, including a golden cross and an ascending parallel channel pattern, which point to potential upside toward $0.0058—a level 29% above its current value [3].

Source:

[1] Pump.fun executes $12.19 million buyback as circulating supply shrinks (https://coincentral.com/pump-fun-executes-12-19-million-buyback-as-circulating-supply-shrinks/)

[2] Pump.fun Announces Another Buyback as PUMP Price Rises 8% (https://coingape.com/pump-fun-announces-another-buyback-as-pump-price-rises-8/)

[3] PUMP price eyes 29% rally backed by token buybacks and fresh demand (https://crypto.news/pump-price-eyes-29-rally-backed-by-token-buybacks-and-fresh-demand/)