Why did the price of PUMP go up?

Pump.fun (PUMP) increased by 1.08% in the last 24 hours, despite dropping 6.63% over the past week and 22.77% over the past month. Here’s why:

1. Buyback Activity – Pump.fun bought back 13.8% of the circulating PUMP tokens (over $205 million worth), which helps reduce selling pressure.
2. Technical Recovery – The price found support near a key Fibonacci level ($0.00276) after showing signs of being oversold.
3. Community Incentives – Bitget’s $9,225 PUMP airdrop campaign sparked short-term interest from traders.

In-Depth Look

1. Buyback Program (Positive Effect)

What happened:
Since July 2025, Pump.fun has repurchased 13.8% of the circulating PUMP tokens (about 2.99 billion tokens) using daily revenue from its platform. On December 10–11, 2025, it bought back over 400 million tokens each day, spending around $1.2 million daily (Coinspeaker).

Why it matters:
Buybacks reduce the number of tokens available for sale, creating scarcity that can support the price. In the past, PUMP’s price rose significantly after large buybacks—for example, a 16.5% increase on August 13, 2025.

What to watch:
Whether Pump.fun’s new Solana memecoin launchpad, which holds 84.8% market share, continues generating enough revenue to fund future buybacks.

2. Technical Recovery (Mixed Signals)

What happened:
PUMP’s price bounced back from the 0.5 Fibonacci retracement level at $0.00276 after its Relative Strength Index (RSI) reached 42.39, indicating a neutral momentum. The MACD indicator also turned positive, suggesting bearish pressure is easing.

Why it matters:
This could signal a short-term price bottom, especially since PUMP is trading 55% below its all-time high of $0.01214 from July 2025. However, resistance remains near the 30-day Simple Moving Average (SMA) at $0.002976, which could limit gains.

3. Airdrop-Driven Speculation (Neutral Effect)

What happened:
On July 16, 2025, Bitget launched a campaign offering a $9,225 PUMP airdrop to users who traded at least $100 in PUMP tokens (CMC Community).

Why it matters:
While such promotions can boost trading volume temporarily, they rarely change the long-term outlook. In fact, PUMP’s 24-hour trading volume dropped by 44.42% to $48.9 million, indicating the initial excitement is fading.

Conclusion

PUMP’s slight price rebound is supported by buybacks and technical signals showing it was oversold. However, challenges remain: meme coins are at a low point in 2025, and nearly 99% of Pump.fun tokens show signs of pump-and-dump activity (Solidus Labs).

Key point to watch: Can PUMP break above $0.003 (its July 2025 ICO price) to signal a potential trend reversal?

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What could affect the price of PUMP?

PUMP is navigating a tough period for meme coins, with both positive and negative factors ahead.

1. Meme Coin Market Shrinking – Market share at its lowest in 2024, with major coins down 66% year-to-date
2. Buyback Program – Pump.fun has bought back 13.8% of PUMP tokens, spending over $205 million so far
3. Legal Challenges – A $5.5 billion lawsuit accuses Pump.fun of unfair practices, which could discourage new users

In-Depth Analysis

1. Meme Coin Market Shrinking (Negative Impact)

Overview:
The share of meme coins in the market dropped to 0.034% in June 2025, the lowest since February 2024 (CryptoQuant). PUMP depends heavily on meme coin activity, which has fallen nearly 66% across the sector this year. On Solana, the main blockchain for PUMP, meme coin trading volumes have dropped more than 50% since October 2024.

What this means:
Less trading activity means less revenue for PUMP, which earns 1% from transaction fees, and less money available for buying back tokens. Historically, meme coins only bounce back when a viral story captures attention—a tough challenge given current market fear levels (Fear sentiment).

2. Buyback Program (Mixed Impact)

Overview:
Pump.fun uses 98% of its revenue to buy PUMP tokens from the market, removing 2.99 billion tokens in just one week in July 2025 (Coinspeaker). However, weekly revenue dropped to $1.72 million in August, down from peaks above $35 million.

What this means:
Buybacks help support PUMP’s price—after August lows, the token rose 54%. But with revenue down 75% since January, the program’s long-term strength depends on meme coin trading picking back up.

3. Legal and Competitive Risks (Negative Impact)

Overview:
A $5.5 billion class-action lawsuit claims Pump.fun operates like an "unlicensed casino" with manipulated token launches (CoinMarketCap). Meanwhile, a competitor, LetsBONK.fun, briefly took some of Pump.fun’s market share in July 2025.

What this means:
Regulatory pressure could lead to fines or force changes to the platform. At the same time, competitors are chipping away at PUMP’s 75% share of Solana’s meme coin market. Both issues put pressure on the project’s current $991 million valuation (CoinMarketCap).

Conclusion

PUMP’s future depends on shifts in meme coin market sentiment amid shrinking liquidity and legal challenges. While buybacks provide some price support, a full recovery likely needs a return of risk appetite for speculative crypto assets. Upcoming upgrades to PUMP’s platform—like real-time trading tools and decentralized exchange (DEX) integration—could help spark renewed developer interest despite regulatory concerns. Keep an eye on weekly revenue trends and the BTC dominance level around 55% as important signals to watch.

What are people saying about PUMP?

The Pump.fun (PUMP) community is divided between excitement over its memecoin potential and doubts following its ICO. Here’s what’s happening right now:

1. $500M ICO frenzy – The ICO sold out in just 12 minutes, but the price is struggling to stay above its initial listing value.
2. Whale activity – Early investors have sold off $101 million worth of PUMP, while buybacks are trying to keep the price stable.
3. High-leverage trading – GMX has introduced 50x leverage trading for PUMP, attracting traders looking for big moves.
4. Mixed technical signals – Analysts see some upward trends, but overall market conditions remain cautious.

Deep Dive

1. @GMX_IO: Traders using 50x leverage see potential bullish

"PUMP/USD perpetuals now live with 50x leverage – wild ride incoming"
– GMX 🫐 (226K followers · 182 likes · 2025-07-15 12:41 UTC)
View original post
What this means: The introduction of high-leverage trading could increase PUMP’s price swings and market activity. However, this also raises the risk of forced sell-offs if the price falls below the $0.0028 support level.

2. @mkbijaksana: Technical charts show possible breakout mixed

"Higher low possible if PUMP clears 0.004228 – confirm with 21 EMA breakout"
– @mkbijaksana (Unavailable followers · 2025-08-27 06:51 UTC)
View original post
What this means: The charts suggest a potential upward move if PUMP can break certain resistance levels. Still, the coin faces challenges from recent losses and heavy selling pressure from ICO holders.

3. @Lookonchain: Early investors selling large amounts bearish

"Two early funds sold 29.5B PUMP ($101M) below ICO price" Source
– Lookonchain (2025-08-08 22:46 UTC)
What this means: This large sell-off puts downward pressure on the price. Since over half of the circulating supply is still held by ICO participants, ongoing selling could continue to weigh on PUMP’s price despite buyback efforts.

4. @Bitget: Airdrop campaign boosts retail interest bullish

"Earn $9,225 PUMP shares via platform engagement" Source
– Bitget (2025-07-16 18:06 UTC)
What this means: The airdrop rewards are encouraging more users to engage with PUMP, which is positive for growth. However, some selling may happen after the airdrop distribution as recipients take profits.

Conclusion

Overall, opinions on Pump.fun (PUMP) are mixed. The coin shows promise thanks to its memecoin appeal and growing trading options, but it also faces challenges from large ICO sell-offs and market uncertainty. Keep an eye on the $0.0028 to $0.0034 price range—breaking above this could indicate strong buying from big holders, while falling below might lead to testing previous lows near $0.0023.

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What is the latest news about PUMP?

Pump.fun is navigating a challenging market marked by skepticism around meme coins and aggressive token buybacks. Here’s the latest update:

1. Meme Sector Declared Dead (December 12, 2025) – CryptoQuant’s CEO points out a sharp drop in meme coin dominance to 0.034, raising concerns about Pump.fun’s association with pump-and-dump schemes.
2. 13.8% of Supply Bought Back (December 11, 2025) – Pump.fun has repurchased $205 million worth of PUMP tokens to help stabilize the price amid negative market sentiment.
3. Price Rally Signals Possible Breakout (December 12, 2025) – Technical analysis indicates a potential 55% price increase if the broader altcoin market (TOTAL3 index) gains momentum.

In-Depth Analysis

1. Meme Sector Declared Dead (December 12, 2025)

Summary:
Ki Young Ju, CEO of CryptoQuant, declared the meme coin sector “dead” after its market dominance dropped to 0.034, matching lows seen earlier this year. Pump.fun came under scrutiny when Solidus Labs reported that 98.7% of its tokens showed signs of pump-and-dump activity. Analysts believe this decline is due to lost investor trust and an oversaturated market, with Solana-based meme coins being particularly affected.

What this means for Pump.fun:
This news is generally negative for PUMP because reduced confidence in meme coins lowers speculative buying. However, some investors believe meme coins could bounce back if a new viral event sparks interest. (CryptoQuant)

2. 13.8% of Supply Bought Back (December 11, 2025)

Summary:
Pump.fun has repurchased 13.8% of its circulating tokens, totaling $205 million, using daily revenue. On December 10 alone, 401.5 million tokens (worth $1.2 million) were bought back, showing a strong effort to reduce selling pressure despite a 9.3% price drop that day.

What this means for Pump.fun:
This move is cautiously optimistic. Buybacks can help reduce token supply and support the price, but the weak price response suggests some ongoing market doubts. Continued buybacks combined with renewed demand could help stabilize PUMP’s price. (Coinspeaker)

3. Price Rally Signals Possible Breakout (December 12, 2025)

Summary:
Technical analysts have identified a descending wedge pattern in PUMP’s price chart, which often precedes a strong upward move. If the broader altcoin market (tracked by the TOTAL3 index) breaks out, PUMP could rally by up to 89% to $0.005. However, if resistance holds, the price could fall to $0.0015.

What this means for Pump.fun:
This outlook is speculative. Positive momentum depends on a recovery in the altcoin market, but overall market sentiment remains cautious, with the Fear & Greed Index at 27 indicating fear. (CryptoNewsLand)

Conclusion

Pump.fun is caught between declining trust in meme coins and strong buyback efforts, with technical signals offering some hope for a price rebound. Whether buybacks and altcoin market strength can overcome the current cautious mood in crypto remains uncertain. Keep an eye on TOTAL3 trends and Pump.fun’s daily buyback activity for clearer signals.

What is expected in the development of PUMP?

Pump.fun’s roadmap is centered on growing its ecosystem and rewarding users.

1. Trading Volume Incentives (Q1 2026) – A 30-day program offering PUMP token rewards to encourage more trading on the platform.
2. EVM Chain Expansion (2026) – Expanding beyond Solana to include Ethereum and other EVM-compatible blockchains.
3. Revenue Sharing for Holders (Q1 2026) – Sharing a portion of platform fees with PUMP token holders.

In-Depth Look

1. Trading Volume Incentives (Q1 2026)

What’s happening:
Pump.fun plans to launch a 30-day reward program where users earn PUMP tokens based on their trading activity. Updates to their software development kit (SDK) in July 2025 showed new features to track trading volume and distribute rewards. Initially, they considered giving out 1 billion PUMP tokens daily, but this amount might be lowered to prevent flooding the market (CoinCu).

Why it matters:

• Positive: This could increase trading activity and attract more users in the short term.
• Caution: Giving out too many tokens could reduce the value of PUMP if not carefully managed.

2. EVM Chain Expansion (2026)

What’s happening:
Pump.fun is planning to expand to Ethereum Virtual Machine (EVM) blockchains like Ethereum and Base. This move aims to compete with platforms like BONK.fun by allowing token launches on multiple networks, reaching a wider audience (CryptoSlate).

Why it matters:

• Positive: Access to Ethereum’s large user base and developer community could boost growth.
• Caution: Technical challenges and competition might slow down this expansion.

3. Revenue Sharing for Holders (Q1 2026)

What’s happening:
Pump.fun is considering a revenue-sharing model where a portion of fees collected (for example, from PumpSwap) would be paid out to PUMP token holders. This aligns with trends in decentralized finance (DeFi). Currently, 50% of PumpSwap fees are already shared with content creators (CoinLive).

Why it matters:

• Positive: This could increase the value and appeal of holding PUMP tokens long-term.
• Caution: Regulatory rules around profit-sharing could pose challenges.

Summary

Pump.fun is working to regain market momentum by offering trading rewards, expanding to new blockchains, and sharing revenue with token holders. These strategies could boost user interest, but success depends on managing token supply carefully and executing plans efficiently. Notably, Pump.fun has already reduced its token supply by 13.8% through buybacks as of December 2025, which may help balance out the risks of issuing new rewards.

What updates are there in the PUMP code base?

Pump.fun’s recent updates focus on improving trading tools and encouraging more activity on the platform.

1. Incentive Program SDK (July 2025) – Added tools to track trading volume, hinting at a possible PUMP token rewards system.
2. Version 2.0 Launch (June 2025) – Made mobile trading easier with one-click trades and live price alerts.
3. Security Upgrades (Q2 2025) – Introduced automated scam detection and stronger contract reviews.

Deep Dive

1. Incentive Program SDK (July 2025)

Overview: New software updates let platform admins set custom rewards and monitor how much users trade. This suggests a future rewards program using the PUMP token.

The code shows daily token distributions linked to trading activity, but exact details aren’t confirmed. A test file mentioned 1 billion PUMP tokens per day (about 3% of the total supply each month), but this is likely just a placeholder.

What this means: This update is neutral for PUMP. It could increase short-term trading but risks lowering token value if too many tokens are released. (Source)

2. Version 2.0 Launch (June 2025)

Overview: This update added real-time price alerts, a “Movers Feed” showing trending tokens, and improved mobile app speed.

The focus was on making trading easier for everyday users, with features like tap-to-trade that reduce delays—helpful for quick trades on popular meme coins. However, PUMP’s price didn’t change much after the update.

What this means: This is positive for PUMP because better usability can attract more traders and creators, which could increase platform fees. (Source)

3. Security Upgrades (Q2 2025)

Overview: The platform improved smart contract audits and added automated tools to detect bots and fake tokens.

These changes help reduce scams by flagging risky token launches and freezing funds for projects that don’t have enough backing.

What this means: This is good news for PUMP because safer token creation builds trust, encouraging more users to join and stay active. (Source)

Conclusion

Pump.fun’s updates show a clear focus on making the platform easier to use (v2.0) and safer (security and incentives). While the new rewards program could risk token dilution, the technical improvements support Solana’s goal of accessible decentralized finance (DeFi). The big question is whether these developments will help Pump.fun stay competitive against rivals like BONK.fun.