Why did the price of PUMP go up?
Pump.fun (PUMP) increased by 8.38% in the last 24 hours, outperforming the overall crypto market, which gained just 0.19%. The main reasons behind this rise are:
- Launch of Project Ascend – A new system focused on creators improved platform activity.
- Buyback Program Growth – Daily buybacks funded by fees lowered the number of tokens available.
- Technical Price Recovery – The price bounced back from an important support level.
In-Depth Look
1. Launch of Project Ascend (Positive Effect)
What happened: On September 18, 2025, Pump.fun introduced “Project Ascend,” which includes Creator Capital Markets (CCM). This system links creator earnings to how much the community engages, using dynamic fees. As a result, new token creation jumped by over 40%, increasing demand for PUMP, which is the platform’s main token. You can read more about this update here.
Why it matters: This update encourages sustainable token launches instead of quick pump-and-dump schemes. It helps Pump.fun strengthen its position in Solana’s memecoin market. More activity on the platform usually means more use of PUMP for paying fees and voting on decisions.
2. Expansion of the Buyback Program (Positive Effect)
What happened: Pump.fun uses all the fees it collects to buy back PUMP tokens every day. On September 24, 2025, these buybacks reached about $19.2 million worth of tokens (118,350 SOL). This is important because it reduces the number of tokens available in the market, which currently has 354 billion tokens circulating. More details can be found here.
Why it matters: Regular buybacks help reduce selling pressure and show that the developers are confident in the project. Since the program expanded in late August, PUMP’s price has increased by 105% over 30 days.
3. Technical Price Recovery (Mixed Effect)
What happened: PUMP’s price bounced back after hitting a key support level known as the 50% Fibonacci retracement ($0.00573), after testing a lower support at $0.00500. The Relative Strength Index (RSI) is neutral at 49.53, while the MACD indicator still shows some negative momentum.
Why it matters: This bounce offers short-term relief, but for a stronger upward trend, PUMP needs to rise above the 7-day Simple Moving Average ($0.00688). If it falls below $0.00573, it might test the low from September at $0.00481 again.
Conclusion
PUMP’s recent price increase is driven by real growth on the platform (Project Ascend), a tokenomics strategy that reduces supply (buybacks), and some technical buying near key price levels. However, the token’s 26% drop over the past week shows that volatility remains a risk, which is common for memecoins.
What to watch: Will PUMP stay above the 50% Fibonacci level ($0.00573) while more creators adopt CCM? Keep an eye on trading volumes for Solana memecoins to see if this trend continues.
What could affect the price of PUMP?
The price of Pump.fun (PUMP) is influenced by memecoin hype, legal challenges, and how widely the platform is used.
- Competition: LetsBONK.fun is taking over much of the market.
- Legal Issues: A $5.5 billion lawsuit could drain Pump.fun’s funds.
- Token Rewards: Plans to give out more tokens might cause price swings.
In-Depth Look
1. Market Competition (Negative Impact)
Overview:
Pump.fun used to control about half of the memecoin launches on the Solana blockchain but now holds just 27.4%. LetsBONK.fun has taken the lead with 55.8% market share (CoinMarketCap). Since January 2025, Pump.fun’s revenue has dropped by 86%, showing that users are moving away.
What this means:
Less market share means less money from fees, which Pump.fun uses to buy back PUMP tokens and support its price. Without unique features, it’s unlikely the price will recover strongly.
2. Legal & Regulatory Risks (Negative Impact)
Overview:
Pump.fun faces a $5.5 billion class-action lawsuit accusing it of running an unlicensed gambling operation, with retail traders losing $722 million (CoinMarketCap). UK regulators banned the platform in March 2025.
What this means:
If the court rules against Pump.fun, it could be forced to sell assets or shut down. Similar cases, like BitMEX in 2020, caused prices to drop 40-60%.
3. Token Incentives (Mixed Impact)
Overview:
Leaked information suggests Pump.fun plans to reward users with PUMP tokens to encourage trading. However, distributing 1 billion tokens daily (about 3% of the total supply each month) risks flooding the market and causing inflation (CoinMarketCap).
What this means:
While this could temporarily boost trading and prices, too many tokens in circulation might hurt the price long-term. A similar program at BONK.fun caused a 25% price jump followed by a 50% drop.
Conclusion
Pump.fun’s future depends on balancing aggressive buybacks with serious legal and competitive challenges. The Relative Strength Index (RSI) at 37.53 suggests the token is oversold, but a 25% weekly revenue drop and strong competition from LetsBONK.fun limit growth potential. Keep an eye on lawsuit outcomes and official updates on token rewards—these will determine if Pump.fun can recover or if regulatory pressures will push it down.
What are people saying about PUMP?
PUMP is a memecoin running on the Solana blockchain, experiencing a rollercoaster of ups and downs. Big token buybacks are trying to counteract large sell-offs by major holders ("whales"), while traders are closely watching the $0.0034 price level as a key point that could determine the coin’s next move. Here’s what’s happening:
- $30 million token buyback boosts optimism despite some resistance ahead
- Large early investor sell-offs raise concerns about a possible 40% price drop
- Revenue growth clashes with falling token price, causing doubts about long-term value
Deep Dive
1. @Lookonchain: Biggest Buyback Since July Signals Confidence
"Pump.fun spent 118,350 SOL ($19.2M) to buy 2.99 billion PUMP tokens at $0.0064 each"
– @Lookonchain (289K followers · 1.2M impressions · 2025-08-08 22:46 UTC)
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What this means: This is a positive sign for PUMP. When the project buys back tokens, it reduces the number of coins available on the market, which can help support the price. It also shows the team believes in the project. However, the buyback price ($0.0064) is much higher than the current price ($0.00342), which could make it harder for the price to rise past that point.
2. @CryptoPatel: Large Investor Sell-Offs Could Trigger Price Drop
"Two funds sold 29.5 billion PUMP tokens ($101M) below the initial coin offering (ICO) price... a 40% price drop is possible if $0.0034 support breaks"
– @CryptoPatel (112K followers · 680K impressions · 2025-08-08 22:46 UTC)
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What this means: This is a warning sign. Early investors selling large amounts of tokens can flood the market and push prices down. Since more than half of the circulating tokens are still held by investors who bought at higher prices during the ICO, if the price falls below $0.0034, it could trigger more selling and a significant price drop.
3. CoinMarketCap: Revenue Growth vs. Token Price Decline Creates Uncertainty
"Weekly revenue reached a 6-month high while PUMP’s price dropped 30% below the ICO price"
– CoinMarketCap (2025-08-19 19:18 UTC)
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What this means: This is a mixed signal. The platform behind PUMP is seeing strong usage and revenue growth, which is good. But the token price is falling, which suggests investors are unsure about the long-term value of holding PUMP tokens despite the project’s operational success.
Conclusion
The outlook for PUMP is mixed. On one hand, large buybacks and growing platform revenue provide reasons for optimism. On the other hand, heavy selling by early investors and the critical $0.0034 price level create uncertainty. The next 48 hours will be important to see if PUMP can break above this key price or if selling pressure will push it lower. Keep an eye on price movements around this level to understand which way the market is leaning.
What is the latest news about PUMP?
Pump.fun is capitalizing on the growing popularity of memecoins by introducing creator-focused improvements and hitting new record highs. At the same time, its strategy of buying back tokens has sparked some debate. Here’s a quick summary of the latest updates:
- Creator Capital Markets Launch (September 18, 2025) – A new fee system encourages more token creation by rewarding creators based on engagement, boosting activity by 40%.
- Daily Buybacks Drive Speculation (September 17, 2025) – Using revenue to buy back tokens aims to stabilize $PUMP during market ups and downs.
- $3 Billion Market Cap Achieved (September 15, 2025) – PUMP reached an all-time high price of $0.00881 amid excitement over altcoins.
In-Depth Look
1. Creator Capital Markets Launch (September 18, 2025)
What happened: Pump.fun rolled out “Project Ascend,” introducing Creator Capital Markets (CCM). Instead of charging flat fees, CCM rewards creators with higher earnings (up to 10 times more) on smaller projects to encourage steady growth. Additionally, fees from abandoned projects are automatically redirected to community funds.
Why it matters: This change has been positive for PUMP, with Solana blockchain activity jumping 40% and decentralized exchange volumes hitting new highs. However, some experts warn that CCM might encourage the creation of low-quality tokens, as shown by a 200% year-over-year increase in Google searches about “Pump.fun CCM risks.” (WEEX)
2. Daily Buybacks Drive Speculation (September 17, 2025)
What happened: Pump.fun has been using fees collected by the platform to buy back its own tokens daily. For example, in mid-July, it repurchased about 2.99 billion PUMP tokens, worth roughly $17.8 million. This follows a trend in 2025 where other crypto projects like Hyperliquid and Jupiter also use revenue to buy back or lock tokens.
Why it matters: In the short term, buybacks helped reduce selling pressure, with PUMP’s price rising 108% over 30 days. But long-term success depends on the platform’s revenue, which dropped 67% after its initial coin offering (ICO). Analysts warn that spending $31.3 million on buybacks since August could drain reserves if user activity continues to decline. (Millionero)
3. $3 Billion Market Cap Achieved (September 15, 2025)
What happened: On September 14, PUMP’s market value hit $3 billion, with its price reaching an all-time high of $0.00881. This surge was driven by excitement around altcoins (“altseason”) and the return of live-streaming features that turn viewers into active traders.
Why it matters: While investor enthusiasm remains strong—PUMP’s price rose 146% over the past month—the technical outlook is fragile. The token’s price has since dropped 32% to $0.00597. There’s also a high risk of liquidations, with $743 million in open derivative contracts. (Bit2Me)
Conclusion
Pump.fun is innovating with Creator Capital Markets and using buybacks to keep momentum going. However, questions remain about whether these strategies can sustain long-term growth as competition heats up. Will CCM attract dedicated creators, or will it turn into a speculative playground? Only time will tell.
What is expected in the development of PUMP?
Pump.fun’s roadmap is focused on growing its ecosystem and rewarding users. Here are the key upcoming features:
- PUMP Token Incentives (Late 2025) – Rewards based on trading volume to encourage more activity.
- Decentralized Treasury (DAT) Integration (Q4 2025) – Automated daily buybacks to help keep the token price stable.
- Governance Rollout (2026) – Token holders will get a say in platform decisions.
- Revenue Sharing Expansion (TBD) – More profit sharing for PUMP holders.
In-Depth Look
1. PUMP Token Incentives (Late 2025)
What’s happening:
Pump.fun plans to launch a 30-day program that rewards users with PUMP tokens based on how much they trade. Early code hints at distributing up to 1 billion PUMP tokens per day (about 3% of the total supply), but the final details haven’t been confirmed yet (CoinMarketCap News).
Why it matters:
This could boost trading activity in the short term, which is good for the platform. But if too many tokens are given out, it might lower the token’s value. Keep an eye out for official updates on how they’ll manage this.
2. Decentralized Treasury (DAT) Integration (Q4 2025)
What’s happening:
Co-founder Noah mentioned plans for a Decentralized Treasury system that will use platform revenue to automatically buy back PUMP tokens every day. This could create $1 million to $5 million in daily demand for PUMP (X Post).
Why it matters:
This could help keep the token price steady and build confidence among long-term holders. However, the success depends on consistent revenue to fund these buybacks.
3. Governance Rollout (2026)
What’s happening:
Pump.fun wants to let PUMP token holders vote on important platform decisions like upgrades, fees, and partnerships. This is part of their move toward decentralization (Blockworks).
Why it matters:
Giving users a voice can make the token more useful and valuable. But if voting participation is low or rewards aren’t attractive, it might not have much impact.
4. Revenue Sharing Expansion (TBD)
What’s happening:
Currently, Pump.fun shares 50% of fees from PumpSwap with content creators. The roadmap suggests expanding this to share 25% of the entire platform’s revenue with PUMP holders, pending approval through governance (CoinLive).
Why it matters:
If implemented, this would directly link the token’s value to the platform’s success, which is positive for holders. But delays or smaller payouts could cause some holders to sell.
Conclusion
Pump.fun’s roadmap combines short-term rewards with long-term improvements like the Decentralized Treasury and governance features. These steps could increase the usefulness and value of PUMP tokens. However, the platform needs to carefully manage token supply and keep growing its revenue to support these plans. With over $800 million in annual revenue as of August 2025 (source), the big question is whether Pump.fun can sustain this growth and deliver on its promises.
What updates are there in the PUMP code base?
Pump.fun’s latest updates aim to improve user experience and grow rewards within its ecosystem.
- Mobile App Redesign (June 28, 2025) – Simplified trading with one-tap orders and live price updates
- Volume Incentives SDK (July 27, 2025) – New tools to reward traders with PUMP tokens
- Token Buyback Feature (July 16, 2025) – Automated system to manage token supply by buying back PUMP
In-Depth Look
1. Mobile App Redesign (June 28, 2025)
What’s new: The updated app (version 2.0) added real-time price alerts, a “Movers Feed” showing popular coins, and easy tap-to-trade options designed for smartphones.
Thanks to improvements on the Solana network, trade confirmations now happen much faster—dropping from about 8 seconds to under 2 seconds. Push notifications also arrive 63% quicker, making the app more responsive.
Why it matters: Faster trades and timely updates make the platform more appealing, especially to everyday users. This could lead to more trading activity and higher revenue for Pump.fun. (Source)
2. Volume Incentives SDK (July 27, 2025)
What’s new: Developers found updates to the software tools (SDK) that track trading volume and distribute PUMP token rewards.
The code includes smart contracts called RewardDistributor.sol that can be set to allocate tokens daily. Currently, the system is testing with a placeholder of 1 billion PUMP tokens per day.
Why it matters: Offering rewards can encourage more trading in the short term. However, if too many tokens are released without balancing measures like token burns, it could put downward pressure on PUMP’s price. (Source)
3. Token Buyback Feature (July 16, 2025)
What’s new: The platform now has a built-in mechanism to use 25% to 100% of its fees to buy back PUMP tokens automatically.
At the current trading volume of $565 million daily, this could mean about $141 million per week going toward buybacks if fully activated.
Why it matters: Buybacks can help reduce selling pressure by taking tokens out of circulation, which may support the token’s value. However, this depends on the platform maintaining strong revenue. (Source)
Conclusion
Pump.fun is focusing on keeping users engaged through app improvements and balancing its token economy with rewards and buybacks. Since 70% of trades now happen on mobile devices, the key question is whether the team can keep up with larger exchanges in speed and features while managing PUMP’s supply to avoid inflation.