Why did the price of PUMP go up?

Pump.fun (PUMP) increased by 4.08% in the last 24 hours, bouncing back after a 53% drop over the past 30 days. This recovery is driven by strong token buybacks, positive technical signals, and better liquidity thanks to new exchange listings.

1. $138 Million Buyback Program – Cut circulating supply by 3% since July
2. Technical Recovery Signs – RSI at 33 suggests the token was oversold and is now rebounding
3. Binance.US Listing Boost – Made PUMP easier to buy since its September 10 launch

In-Depth Analysis

1. Buyback-Driven Scarcity (Positive for Price)

What’s happening: Since July, Pump.fun has spent $138 million buying back 3% of all PUMP tokens, with buybacks speeding up in October 2025. This follows a larger trend in crypto where companies repurchased $1.4 billion worth of tokens in 2025, led by platforms like Hyperliquid (Yahoo Finance).

Why it matters: Buying back tokens reduces the number available to sell, which can help support the price. It also shows the team’s confidence in PUMP’s value, currently estimated at $3.68 billion. However, since the platform’s revenue has dropped 75% since January, there may be limits to how much more buybacks can continue.

2. Technical Recovery Setup (Mixed Signals)

What’s happening: Some technical indicators suggest PUMP might be ready to bounce:

• The Relative Strength Index (RSI) is 33.16, close to the oversold level of 30, meaning it might be undervalued right now.
• The MACD histogram shows shrinking bearish momentum, indicating selling pressure is easing.
• The price held steady at $0.0035 on October 15, acting as a support level.

Why it matters: These signs point to a possible short-term recovery. However, PUMP is still trading below its key moving averages, like the 7-day simple moving average (SMA) at $0.0039. If it can break above $0.0039 and hold, the next resistance level to watch is $0.0045.

3. Exchange Listings & Liquidity (Positive for Trading)

What’s happening: PUMP was listed on Binance.US on September 10, which helped push its price up nearly 40% that week. MEXC also started listing Pump.fun tokens weekly, making it easier for everyday investors to buy and sell.

Why it matters: New exchange listings usually increase trading volume and make a token more visible. PUMP’s 24-hour trading volume hit $183.9 million, a 485% increase compared to July. Still, broader market conditions are challenging—an index called "Bitcoin Season" is at 21, indicating altcoins like PUMP face headwinds from the overall crypto market.

Conclusion

PUMP’s recent price rebound is fueled by deliberate scarcity from buybacks and encouraging technical signals. However, it remains sensitive to wider market risks. The key question now is whether PUMP can stay above its 7-day SMA at $0.0039 to confirm a positive trend, or if reduced buyback activity will lead to renewed selling. Keep an eye on the $0.004 Fibonacci level for clues on where the price might head next.

What could affect the price of PUMP?

Pump.fun (PUMP) is navigating between aggressive buybacks to support its token price and growing competition in the memecoin space.

1. Buyback Strategy – Since July, $138 million has been spent buying back tokens to reduce supply, but questions remain about how long this can last.
2. Regulatory Risks – A $5.5 billion lawsuit accuses Pump.fun of running an unlicensed operation, which could lead to investor sell-offs.
3. Competition Pressure – New players like Zora (now listed on Robinhood) and LetsBONK are gaining market share, challenging Pump.fun’s dominance.

Deep Dive

1. Buyback Mechanics & Tokenomics (Mixed Impact)

Overview:
Pump.fun has used about 3% of its total PUMP tokens—worth $138 million—to buy back tokens since July 2025. These buybacks help reduce the number of tokens available, supporting the price. On average, the platform spent between $1.3 million and $2.3 million daily on buybacks, funded by fees collected from users. However, revenue has dropped sharply—down 80% from its peak in January to around $200,000 per day in August (CoinTelegraph).

What this means:
While buybacks helped push PUMP’s price up 54% from its August low ($0.002282 to $0.003522), the decline in revenue raises concerns about whether buybacks can continue at this pace. Historically, tokens that rely heavily on buybacks can experience price swings when funding slows.

2. Legal & Regulatory Headwinds (Bearish Impact)

Overview:
Pump.fun is facing a U.S. class-action lawsuit accusing it of operating an “unlicensed casino,” with alleged investor losses totaling $5.5 billion. Additionally, the UK’s Financial Conduct Authority (FCA) identified 98.7% of Pump.fun tokens as part of pump-and-dump schemes in 2025 (Yahoo Finance).

What this means:
Increased regulatory scrutiny could force Pump.fun to change how it operates, such as implementing stricter controls on tokens. Past cases, like BitMEX’s 2020 legal troubles, show that such lawsuits often lead to prolonged price drops—on average, a 42% decline over several months.

3. Memecoin Launchpad Wars (Bearish Impact)

Overview:
Pump.fun’s share of the Solana memecoin market has dropped from 80% in January 2025 to just 14.7% by August. Competitors like LetsBONK and Zora are gaining ground. Zora’s recent listing on Robinhood boosted its token price by 35%, and LetsBONK’s trading volume reached $543 million compared to Pump.fun’s $55 million (CCN).

What this means:
Platforms that offer creators a larger share of revenue—like Zora’s 50% fee split—are attracting users and liquidity away from Pump.fun. The number of active Pump.fun wallets dropped 22% in the third quarter of 2025, signaling users are moving to competitors. This is a significant risk for Pump.fun, as its token value depends heavily on platform activity.

Conclusion

The future of Pump.fun (PUMP) depends on how well it can balance its buyback program against serious challenges: legal risks that could damage trust and competitors that are taking over its memecoin market share. The price range between $0.0034 and $0.0041 is critical. If PUMP can hold above this range, it could aim for $0.0055. But if it falls below, it might retest the August low near $0.0022.

Will Project Ascend’s new fee structure be enough to bring creators back before rivals solidify their lead?

What are people saying about PUMP?

The Pump.fun (PUMP) community is experiencing ups and downs driven by buyback excitement, concerns about large holders selling, and competition among memecoins. Here’s the latest:

1. A $19.2 million token buyback has sparked optimism but faces challenges
2. Large early investors selling post-ICO could destabilize the price
3. The Glass Full Foundation is working to support Solana-based memecoins
4. Competition with LetsBonk is intensifying as market shares shift

In-Depth Look

1. @Lookonchain: $19.2M Buyback Strategy (mixed outlook)

“Pump.fun spent 118,350 SOL ($19.2M) buying 2.99 billion PUMP tokens at an average price of $0.0064 — 87% higher than the current price.”
– @Lookonchain (167K followers · 4.2M impressions · August 8, 2025)
See original post
What this means: The buyback reduces the number of tokens available and shows the team’s confidence. However, since the buyback price is much higher than the current price ($0.00342), it creates a psychological barrier for investors. Some critics say this suggests weak natural demand for PUMP.

2. @CryptoPatel: Risks from Large Holder Sell-Offs (bearish outlook)

“Two early investors sold 29.5 billion PUMP tokens ($101 million) below the ICO price — risking a 40% price drop if $0.0034 support breaks.”
– @CryptoPatel (92K followers · 1.8M impressions · August 8, 2025)
See original post
What this means: Over half of the circulating PUMP tokens are still held by investors who bought at higher prices. If the price falls below $0.0034, it could trigger panic selling, pushing the price down to the next support level around $0.0024.

3. @PumpDotFun: Glass Full Foundation Launch (bullish outlook)

“Providing liquidity to Solana memecoins like FARTCOIN to help grow the ecosystem.”
– @PumpDotFun (Official account · August 8, 2025)
See original post
What this means: This effort temporarily lifted PUMP’s price by 7%, but overall platform revenue is still 97% below its $7 million peak in January, raising questions about long-term growth.

4. Dune Analytics: Competition Between LetsBonk and Pump.fun (neutral)

“Pump.fun leads in daily token launches (13,690 vs. 13,392) but lags in revenue ($716K vs. $831K).”
– Data as of August 6, 2025
What this means: Pump.fun is regaining some market share, but LetsBonk’s lower fees and integration with the BONK ecosystem present ongoing competition challenges.

Summary

The outlook for PUMP is mixed. On one hand, aggressive strategies like buybacks and ecosystem incentives show promise. On the other hand, risks from large holders selling and declining revenue remain concerns. Technically, the price is moving within a bullish channel aiming for $0.0034, but the $0.004 ICO price still acts as a key psychological hurdle. Keep an eye on the $0.0034 level this week — breaking above it could confirm positive momentum from the Glass Full Foundation, while failing to hold it might support bearish views tied to whale selling.

What is the latest news about PUMP?

Pump.fun (PUMP) is riding the wave of memecoin popularity amid a surge in buybacks and some security concerns. Here’s the latest update:

1. Buyback Boom (October 17, 2025) – Since July, Pump.fun has spent $138 million to buy back 3% of its tokens, making them scarcer.
2. DOTA 2 Hack Fallout (October 16, 2025) – Hackers took over a popular gaming channel to promote fake tokens linked to Pump.fun.
3. Technical Rebound Signals (October 15, 2025) – After a 31% drop in a week, signs point to a possible price recovery.

Deep Dive

1. Buyback Boom (October 17, 2025)

What happened: Pump.fun has repurchased $138 million worth of PUMP tokens since July 2025, removing about 3% of the tokens available in the market. This move is part of a larger trend in 2025, where crypto projects have spent $1.4 billion on buybacks to reduce token supply and support prices. Pump.fun’s buyback activity picked up speed after July, with monthly spending increasing by 85%.

Why it matters: By reducing the number of tokens available, Pump.fun aims to help stabilize or increase the price of PUMP over time, especially after a recent 53% drop in the last 30 days. However, heavy buybacks can also suggest that there isn’t strong natural demand for the token. This strategy is similar to how some decentralized autonomous organizations (DAOs) manage their funds but depends on the platform continuing to generate revenue. (Yahoo Finance)

2. DOTA 2 Hack Fallout (October 16, 2025)

What happened: Hackers took control of the official DOTA 2 YouTube channel and used it to promote a fake Solana-based memecoin that appeared linked to Pump.fun. The scam token’s website redirected users to Pump.fun, but blockchain data showed that 98% of the scam token’s supply was controlled by a single wallet. After the news broke, PUMP’s price dropped 4% during the day.

Why it matters: Although Pump.fun itself wasn’t hacked, this incident could hurt its reputation because of the association. It highlights the risks in the memecoin space, where scams and pump-and-dump schemes are common. This could lead to increased regulatory attention on platforms that allow quick creation of new tokens. (Yahoo Finance)

3. Technical Rebound Signals (October 15, 2025)

What happened: On October 15, PUMP’s price bounced back 11%, moving from $0.0037 to $0.0041. Technical indicators like the Chaikin Money Flow (CMF +0.10) showed positive momentum, and the MVRV ratio was low at 0.28, suggesting holders aren’t rushing to sell. Analysts see resistance at $0.0048 as a key level to watch.

Why it matters: The low MVRV ratio means selling pressure is light, which could support a price recovery. However, PUMP is still trading about 90% below its all-time high. If the price breaks above $0.0055, it might signal a trend reversal. If it fails, the price could drop back to around $0.0038. (CCN)

Conclusion

Pump.fun is balancing aggressive token buybacks with the ups and downs typical of memecoin markets and security challenges. While reducing supply and technical signs of recovery offer some optimism, the platform’s connection to speculative assets means it faces ongoing regulatory and reputation risks. Will buybacks be enough to outlast the fading memecoin hype, or will outside scandals pull PUMP further down?

What is expected in the development of PUMP?

Pump.fun is making progress with these key updates:

1. Trading Incentives Expansion (Q4 2025) – Increasing PUMP token rewards to encourage more trading on the platform.
2. Governance Activation (2025) – Allowing PUMP token holders to vote on important platform decisions.
3. Ecosystem Liquidity Support (Ongoing) – The Glass Full Foundation is investing in Solana projects to help grow the community.

Detailed Overview

1. Trading Incentives Expansion (Q4 2025)

What’s happening:
Pump.fun is growing its 30-day trading reward program, which was updated through software improvements in July 2025. This program gives users PUMP tokens based on how much they trade, aiming to bring back users who moved to competitors like LetsBONK.fun. Early tests showed rewards could be as high as 1 billion PUMP tokens per day, but the final plan is still flexible.

Why it matters:
This is a positive sign for PUMP because it could increase trading activity and attract more users in the short term. However, giving out 3% of all tokens every month could reduce the value of existing tokens if not managed carefully.

2. Governance Activation (2025)

What’s happening:
Pump.fun plans to turn PUMP into a governance token. This means token holders will get to vote on things like platform updates, fees, and new projects (Coinlive). This follows the July 2025 ICO, where 24% of tokens were set aside for community and ecosystem growth.

Why it matters:
This is a neutral development for PUMP. Governance can make the token more useful and encourage long-term holding, but its success depends on how well the voting system works and how many people participate.

3. Ecosystem Liquidity Support (Ongoing)

What’s happening:
The Glass Full Foundation (GFF), started in August 2025, is providing funding to Solana-based projects that have strong community support. Details about where the money comes from or how projects are chosen aren’t clear yet. The first round of funding began in Q3 2025.

Why it matters:
This is a positive move for PUMP if it helps grow the Solana ecosystem, which could lead to more users for Pump.fun. However, there are risks because the funding process isn’t fully transparent, and there’s competition from other groups like Raydium LaunchLab.

Summary

Pump.fun’s plan focuses on rewarding traders, giving token holders a voice, and supporting the Solana community. These steps could help Pump.fun strengthen its position in the market. Still, challenges remain, especially around managing token supply and navigating regulations. The big question is: can Pump.fun offer strong incentives while keeping the token’s value steady?

What updates are there in the PUMP code base?

Pump.fun’s recent updates focus on making the platform easier to use and improving how it works behind the scenes.

1. Dynamic Fees V1 (September 2, 2025) – Changed fees to encourage smaller projects to join.
2. Version 2.0 Launch (June 28, 2025) – Added real-time alerts and one-click trading for faster, simpler transactions.

Deep Dive

1. Dynamic Fees V1 (September 2, 2025)

Overview: Pump.fun introduced a new fee system where smaller projects pay a higher fee (0.95%) and larger projects pay less (0.05%). This change aims to help new tokens grow by making it easier and more rewarding for creators. In just 24 hours after the update, $2 million was paid out to creators, compared to $198,000 before the change (Cointribune).

This fee structure helps balance support between new and established projects, lowering the cost for smaller creators while still generating revenue from bigger tokens.

What this means: This is good news for PUMP because it encourages more creators to launch tokens on the platform, which can increase activity and fees collected. However, some worry that lower fees for smaller projects might lead to more risky or scam tokens.

2. Version 2.0 Launch (June 28, 2025)

Overview: The update added features like real-time price alerts, a “Movers Feed” showing trending tokens, and one-click trading to make buying and selling meme coins easier (CoinMarketCap).

The update also focused on mobile users, cutting transaction delays by about 40% compared to before.

What this means: This update improved the user experience and made trading smoother, but it didn’t directly affect the value or use of the PUMP token. After the update, the price of PUMP stayed mostly steady.

Conclusion

Pump.fun is steadily improving its platform to attract more creators and traders. However, the value and role of the PUMP token remain separate from these upgrades. It will be interesting to see if future updates make PUMP a bigger part of the platform’s rewards and incentives.