While major cryptocurrencies like Bitcoin and Ether take a hit, a smaller player is making waves. Pump.fun, a platform for launching memecoins on Solana, has invested heavily in its own token. This big spend helped its native PUMP token climb 12% in the last week, even as the wider market dipped.
Pump.fun has poured over $60 million into buying back its PUMP tokens. Data from a Dune Analytics dashboard shows the platform bought over 16.5 billion tokens. Each token cost an average of $0.003785. The goal is simple: reduce the number of PUMP tokens out there and keep the price steady against selling pressure.
The platform makes money by charging fees for every memecoin created. It has pulled in more than $775 million since it started, according to DefiLlama. This cash flow lets Pump.fun buy back tokens daily, spending between $1.3 million and $2.3 million in the past week alone.
Pump.fun gained a lot of attention earlier this year. It rode the wave of popular memecoins, including those linked to celebrities like TRUMP and MELANIA. The platform’s activity soared during that time. Since its launch, it has seen 12.5 million tokens come to life. A whopping 23 million wallets have used the site, showing a strong user base.
PUMP Bucks the Trend as Crypto Giants Fall
According to CoinGecko, PUMP jumped another 2.4% in just the last 24 hours. It now sits 41% above its August low of $0.002515. Still, its current price of $0.003556 is 47% below its all-time high of $0.006812. That peak came on July 12, right after a successful initial coin offering (ICO).
This week, Bitcoin and Ether are down between 6% and 8%. Despite this market downturn, Pump.fun has cemented its role as a leader in Solana’s memecoin space. As of this report, Bitcoin trades below $109,000, and ETH hovers around $4,340.
Figures from Jupiter show Pump.fun grabbed the top spot in market share again, hitting 73%. It also saw $4.5 billion in trading volume over the last seven days, beating out rivals like LetsBonk. More people are getting involved too. The number of PUMP token holders has climbed past 70,800. Small investors hold 46% of the tokens, pointing to growing interest from everyday buyers.
This recent price boost for PUMP comes as the platform faces a big challenge. A $5.5 billion class-action lawsuit accuses it of using “artificial hype” in its marketing. The lawsuit even calls it an “unlicensed casino.”
With continued buybacks and a fall season that usually favors digital assets, PUMP might keep its upward climb. CoinDesk highlighted this possibility. However, its ongoing success will depend on Pump.fun’s ability to keep its revenue steady in a very unpredictable market.