Why did the price of PUMP go up?

Pump.fun (PUMP) increased by 1.21% in the last 24 hours, which is less than the overall crypto market that dropped by 0.62%. This small gain comes after the team bought back a lot of tokens and made platform improvements, but the price remains fragile due to negative technical signals.

1. Buyback Efforts – $138 million spent since July to reduce token supply
2. Handling Controversy – Quick ban of a problematic influencer helped calm the community
3. Technical Signals – Price bounced from oversold levels and key support points

In-Depth Look

1. Buyback Program Speeds Up (Positive Sign)

What’s happening: Since July 2025, Pump.fun has bought back about 3% of all circulating PUMP tokens, spending a total of $138.2 million, according to MEXC News. Just between August 20 and 26, they spent $58.7 million on buybacks, using money earned from the platform.

Why it matters: Buying back tokens reduces how many are available, which can help increase the price if demand stays steady. The platform has made over $775 million so far this year. But there’s a concern because platform fees have dropped by 75% since January 2025, which could make it harder to keep buying back tokens.

What to watch: Daily buyback amounts (currently between $1.3 million and $2.3 million) and whether the team finds new ways to fund these buybacks.

2. Influencer Ban Helps Protect Reputation (Mixed Outcome)

What’s happening: On October 21, Pump.fun banned influencer Sam Pepper after a fireworks stunt he did injured a teenager. This event caused the price of his related token, NERVE, to fall 16%, as reported by Decrypt.

Why it matters: The quick ban helped limit damage to Pump.fun’s reputation but also showed the platform’s reliance on unpredictable meme coin influencers. After the ban, PUMP’s trading volume dropped by 5.12%, indicating traders became more cautious.

3. Price Shows Technical Bounce (Neutral)

What’s happening: PUMP’s price bounced back from a key support level called the 78.6% Fibonacci retracement at about $0.00252. The Relative Strength Index (RSI), a measure of how overbought or oversold a token is, was at 38.08, close to oversold territory. However, the price is still below its 30-day average price of $0.00528.

Why it matters: This bounce isn’t very strong yet. While some buying interest is increasing, other indicators like Open Interest (which shows how many contracts are open in futures trading) have stalled. For a stronger upward move, the price needs to close above $0.0052 to break the current downward trend.

Conclusion

PUMP’s small price recovery is supported by ongoing buybacks and quick action to manage controversy. However, broader challenges like a 41% drop in monthly volume and low liquidity (turnover at 0.219) limit how much the price can rise. Key point to watch: Can buybacks make up for falling platform revenue? The next important resistance level is at $0.00437 (the 50% Fibonacci retracement).

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What could affect the price of PUMP?

PUMP is caught between strong buyback efforts and tough regulatory challenges.

1. Buyback Activity – Since July 2025, $138 million has been spent to buy back 3% of PUMP tokens, helping reduce selling pressure.
2. Regulatory Challenges – A $5.5 billion lawsuit accuses PUMP of unlicensed gambling, while UK regulators have banned trading, and New York is investigating possible securities violations.
3. Whale Influence – Early investors (whales) hold 55% of PUMP tokens. Recently, two whales sold $101 million worth of tokens, risking further price drops if more sell-offs happen.

In-Depth Analysis

1. Buyback Efforts: Helping but Not a Guarantee

Since July 2025, Pump.fun has used all platform fees to buy back PUMP tokens, burning 3% of the total supply—about $138 million worth. This helps support the token price by reducing the number of tokens available to sell. However, in October, the market downturn caused $40 million of these buybacks to lose value, as the current token price ($0.00395) is lower than the average buyback price ($0.0064).

This means buybacks can stabilize prices temporarily, but they rely heavily on the platform generating enough revenue. Unfortunately, daily platform fees dropped sharply from $7 million in January to just $200,000 in October (DefiLlama). If user activity doesn’t pick up, continuing buybacks may not be financially sustainable.

2. Regulatory Pressure: A Major Concern

In July 2025, a class-action lawsuit in the UK accused Pump.fun of running an unlicensed gambling operation, seeking $5.5 billion in damages. At the same time, the UK’s Financial Conduct Authority (FCA) banned PUMP trading for UK residents. New York regulators are also investigating possible securities law violations.

These legal issues could scare off big investors and lead to exchanges delisting PUMP. For context, similar legal troubles caused Rollbit (RLB) to lose 63% of its value in just two weeks in 2024 (CoinGecko).

3. Whale Token Holdings: A Risk Factor

More than half (55%) of PUMP tokens are held by early investors from the ICO. Recently, two large holders sold 29.5 billion tokens, worth $101 million, at prices below the ICO level in August 2025. If the token price falls below $0.0034, more holders who are currently losing money might panic and sell, causing further price drops (Lookonchain).

This concentration of tokens in a few hands creates a risk of sharp price declines. The ICO price of $0.004 now acts as a resistance level, and over half of holders are currently at a loss according to IntoTheBlock.

Conclusion

PUMP’s future depends on balancing its buyback strategy with the risks posed by legal challenges and large token holders. While new investments from the Glass Full Foundation into Solana memecoins might boost platform activity, unresolved legal issues could limit growth.

Key point to watch: Will PUMP hold the $0.0034 support level this week, or will whale selling push it down to $0.0024? Keep an eye on token movements on exchanges through Nansen.

What are people saying about PUMP?

The Pump.fun (PUMP) community is divided between excitement over a big buyback and concerns about large holders selling off. Here’s what’s trending:

1. $30 million buyback sparks hope for less supply
2. Big holders selling could cause a 40% price drop
3. Glass Full Foundation boosts memecoin liquidity

Deep Dive

1. @Lookonchain: Biggest buyback since July looks positive

“Pump.fun spent 118,350 SOL ($19.2 million) to buy 2.99 billion PUMP at $0.0064, which is 87% higher than the current price.”
– @Lookonchain (1.2 million followers · 12 million impressions · August 8, 2025)
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What this means: This is good news because it reduces the number of coins available, which can support the price. However, it also sets a price level where selling pressure might increase, as sellers may want to get back to the buyback price.

2. @CryptoPatel: Early investors selling is a negative sign

“Two early investors sold 29.5 billion PUMP ($101 million) below the initial coin offering (ICO) price. If the price falls below $0.0034, it could drop further to $0.0024.”
– @CryptoPatel (890,000 followers · 8.3 million impressions · August 8, 2025)
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What this means: This is a bearish signal because more than half of the coins in circulation are still held by investors who bought at higher prices and are now selling at a loss, which puts downward pressure on the price.

3. @PumpDotFun: Glass Full Foundation’s role is mixed

“Adding liquidity to Solana memecoins through projects like FARTCOIN and Peanut Squirrel.”
– @PumpDotFun (Official account · August 8, 2025)
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What this means: This is neutral news. There was a 7% price increase, but some remain skeptical because the platform’s revenue has dropped sharply (down 97% since January 2025).

Conclusion

Opinions on Pump.fun (PUMP) are mixed. The $30 million buyback shows the team’s confidence and helps reduce supply, which is positive. However, large holders selling and the platform’s declining revenue create challenges. The $0.0034 price level is critical—if the price stays above it, the positive outlook from Glass Full Foundation could gain traction. If it falls below, bearish trends may continue. Keep an eye on derivatives trading volume ($512.9 million as of August 6) for clues on how traders are positioning themselves during this uncertain time.

What is the latest news about PUMP?

Pump.fun (PUMP) is facing challenges as it deals with controversies and token buybacks while its memecoin platform comes under scrutiny. Here’s a quick summary of the latest developments:

1. Streamer Ban Causes Backlash (October 21, 2025) – Popular streamer Sam Pepper was banned after a dangerous firework stunt, causing a 16% drop in his related memecoin.
2. $138 Million Buyback Program Update (October 19, 2025) – Pump.fun ranks third in 2025’s $1.4 billion token buyback wave.
3. Technical Challenges at Key Price Level (October 20, 2025) – PUMP struggles with bearish signals despite a small price rebound.

In-Depth Look

1. Streamer Ban Causes Backlash (October 21, 2025)

What happened:
British streamer Sam Pepper was banned from Pump.fun and Kick after a livestreamed firework stunt injured a teenager in India. Following the ban, his memecoin NERVE dropped 16%, highlighting the risks of influencer-driven promotions. Pump.fun co-founder Alon Cohen confirmed the ban quickly, but this incident raised questions about how well the platform manages risky user behavior.

Why it matters:
This event hurts PUMP’s reputation because it shows gaps in how the platform controls high-risk actions by users, which could discourage wider adoption. However, Pump.fun’s quick response might help limit long-term damage. (Decrypt)

2. $138 Million Buyback Program Update (October 19, 2025)

What happened:
Since July 2025, Pump.fun has bought back 3% of PUMP’s circulating tokens, totaling $138.2 million, as part of its revenue-sharing strategy. This places Pump.fun third in the 2025 buyback rankings, behind Hyperliquid and LayerZero. However, recent market dips have affected the value of some repurchased tokens.

Why it matters:
Buybacks generally show confidence and help reduce selling pressure, which is positive for PUMP. Still, their effect is limited without ongoing demand. The program’s average of $40 million per month highlights Pump.fun’s strong revenue, even as platform activity slows. (MEXC News)

3. Technical Challenges at Key Price Level (October 20, 2025)

What happened:
PUMP’s price hit resistance at $0.0052 after a 2.45% bounce. Technical indicators like the Relative Strength Index (RSI) at 44 and the Chaikin Money Flow (CMF) at +0.04 suggest weak buying momentum. Analysts say reclaiming the 78.6% Fibonacci retracement level at $0.0048 is crucial to avoid further downward pressure after the October price drop.

Why it matters:
Short-term outlook is bearish. Limited trading interest and mostly spot-market buying show weak conviction. If PUMP closes above $0.0052, it could trigger automated buying, but failing to do so might lead to testing the July low of $0.0037. (AMBCrypto)

Conclusion

Pump.fun is navigating operational controversies alongside aggressive token buybacks, but it faces both technical and reputational risks. While buybacks help support the token’s value, the platform’s future depends on its ability to move beyond meme-driven volatility and deliver sustainable growth. Upcoming roadmap updates will be key to shifting the story from stunt-related issues to long-term success.

What is expected in the development of PUMP?

Pump.fun’s roadmap is centered on growing its ecosystem and rewarding users, with several important milestones coming up.

1. Volume Incentive Program (Q4 2025) – Users will earn PUMP tokens as rewards for trading activity.
2. EVM Chain Expansion (2026) – Pump.fun plans to expand beyond Solana to Ethereum-compatible blockchains.
3. Glass Full Foundation Initiatives (Ongoing) – Efforts to increase liquidity within the Solana ecosystem.

In-Depth Look

1. Volume Incentive Program (Q4 2025)

What’s happening:
Pump.fun is launching a 30-day program that rewards users with its native PUMP tokens based on their trading volume. This was revealed through recent software updates (Dumpster DAO). The goal is to encourage more trading and regain market share from competitors like BONK.fun. Early code suggests rewards could be as high as 1 billion PUMP tokens per day, which is about 3% of the total supply each month, though these numbers might change.

Why it matters:
This is a positive sign for PUMP because it could increase trading activity and make the token more useful. However, if too many tokens are given out, it could reduce the value of existing tokens, so the program needs to be carefully managed.

2. EVM Chain Expansion (2026)

What’s happening:
Leaked documents indicate Pump.fun plans to expand beyond the Solana blockchain to include Ethereum Virtual Machine (EVM) compatible chains like Base or Polygon (Dexter via Cryptoslate). This would allow users to create meme coins on these popular networks, reaching a larger audience.

Why it matters:
This move could be good for Pump.fun by attracting users who prefer Ethereum-based networks. However, it might also spread the project’s focus too thin, especially since Pump.fun currently holds 27% of the Solana market compared to LetsBONK’s 55%. How well they manage cross-chain features will be key to success.

3. Glass Full Foundation Initiatives (Ongoing)

What’s happening:
Started in August 2025, the Glass Full Foundation (GFF) aims to support Solana projects that have strong, loyal communities by providing liquidity (Pump.fun). They have begun investing capital, but details on how projects are chosen are still unclear.

Why it matters:
This could help strengthen Pump.fun’s position by supporting the broader Solana ecosystem. However, without clear information on how funds are allocated, it’s hard to measure the potential impact.

Conclusion

Pump.fun’s roadmap combines short-term rewards with longer-term strategic growth and ecosystem support. These efforts could help maintain its $1.4 billion market value, but success depends on managing token supply carefully and delivering a smooth experience across multiple blockchains. The big question remains: will expanding to EVM chains help Pump.fun regain the lead from LetsBONK, or will the risks of spreading too thin hold it back?

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What updates are there in the PUMP code base?

Pump.fun has rolled out important updates to improve how the platform works economically and to increase transparency.

1. Payback System & Flexible Fees (September 11, 2025) – Creators now earn fees, encouraging more sustainable token launches.
2. Live Revenue Dashboard (August 4, 2025) – Anyone can now see daily revenue and buyback activity in real time.
3. SDK Updates for Rewards Program (July 27, 2025) – New code suggests upcoming volume-based rewards paid in PUMP tokens.

In-Depth Look

1. Payback System & Flexible Fees (September 11, 2025)

What’s new: Pump.fun now shares some of its fees with meme coin creators and gives back 5.36% of weekly revenue to PUMP token holders. The platform adjusts fees dynamically based on how well tokens perform and automates payments using smart contracts. This helps discourage quick pump-and-dump schemes by aligning creators’ incentives with the long-term success of their tokens.

Why it matters: This is good news for PUMP holders because it encourages better quality projects on the platform. That could lead to more users sticking around and a higher demand for PUMP tokens, which are used for governance and rewards. (Source)

2. Live Revenue Dashboard (August 4, 2025)

What’s new: A public dashboard now shows Pump.fun’s daily revenue and how much $PUMP is spent on buybacks. In its first week, the platform spent about 8,740 SOL (around $1.4 million) on buybacks. The dashboard uses blockchain data to display key numbers like revenue compared to PUMP token purchases, making it easier for traders and holders to see what’s happening.

Why it matters: This is neutral for PUMP. Transparency helps build trust, but the dashboard also reveals that revenue can be quite volatile. For example, daily earnings dropped below $300,000 in late July, showing the platform still depends heavily on speculative trading. (Source)

3. SDK Updates for Rewards Program (July 27, 2025)

What’s new: Updates to Pump.fun’s software development kit (SDK) include settings for a new rewards program that pays out PUMP tokens based on trading volume. Although the team hasn’t officially confirmed this, the code points to a 30-day campaign aimed at increasing platform activity. Test files mention distributing 1 billion PUMP tokens per day (about 3% of total supply), but this is likely just a placeholder number.

Why it matters: This could be positive for PUMP in the short term because it might lead to more trading volume. However, if too many tokens are released, it could dilute the value of existing tokens. It’s important to watch for official announcements about how the program will be managed to ensure it’s sustainable. (Source)

Conclusion

Pump.fun’s recent updates focus on rewarding both creators and token holders, aiming to balance fast growth with long-term health of the ecosystem. While these changes could help bring more activity back to the platform, their success depends on avoiding too much token supply and continuing to innovate.

How will Pump.fun’s fee-sharing model affect the quality and longevity of meme coins launched on its platform?