TLDR
- Pump.fun has spent over $62 million buying back 16.5 billion PUMP tokens to reduce selling pressure
- The platform created 595,000 new tokens in August and reclaimed top spot with 46.6% market share among Solana launchpads
- PUMP token has gained 12% in the past month, trading at $0.003522, up 54% from its August low
- Over 70,800 unique addresses now hold PUMP tokens, with smaller wallets making up 46% of distribution
- Despite high platform activity, traders collectively lost $66 million in August with over 60% ending in the red
Pump.fun has launched an aggressive buyback campaign for its native PUMP token, spending over $62.6 million to purchase 16.5 billion tokens. These buybacks target an average cost of $0.003785 per token according to data from Dune Analytics.
The platform has been consistently buying back tokens, with daily repurchases ranging between $1.3 million and $2.3 million over the past week.
These buybacks are funded through revenue generated from user fees, primarily collected when users launch memecoins on the platform.
Since launch, Pump.fun has generated more than $775 million in total revenue according to data from DefiLlama.
The buyback strategy appears to be having a positive effect on PUMP’s price performance. The token has gained more than 12% over the past month and approximately 9% over the past week.
PUMP currently trades at $0.003522, representing a 54% increase from its August low of $0.002282.
The consistent buying pressure from the platform has helped stabilize the token’s price action in recent weeks.
Market Position Strengthens
User participation in the PUMP ecosystem has grown steadily. The number of unique token holders has reached over 70,800 addresses, showing expanding interest in the token.
Smaller wallets holding less than 10,000 PUMP tokens now account for 46% of total token distribution. This broadening ownership base suggests growing retail engagement.
Pump.fun faced competitive challenges earlier this year when rival platform LetsBonk temporarily took market share. On July 7, LetsBonk surpassed Pump.fun in 24-hour revenue rankings.
Throughout July, LetsBonk continued to gain ground against Pump.fun on multiple occasions, heating up competition in the Solana memecoin launchpad space.
However, recent data shows Pump.fun has reclaimed its dominant position. Over the last seven days, the platform captured 73% market share with $4.5 billion in trading volume.
LetsBonk’s market share has dropped to less than 9% with $543 million in volume. The competitive gap has widened back in Pump.fun’s favor.
Platform Activity and Challenges
August proved to be a record month for platform activity despite user losses. Pump.fun registered over 1.3 million active addresses during the month.
The platform created 595,000 new tokens in August, more than any competitor. This surge helped secure a 46.6% market share position.
However, users collectively lost $66 million during August trading activity. More than 60% of traders ended the month with losses.
About 882,000 wallets, representing 65.4% of users, lost between $0 and $1,000. No single trader earned more than $1 million during the month.
The platform bought back $58.7 million worth of PUMP tokens in August alone. Total buybacks have now exceeded $66.6 million since the program began.
Revenue data shows Pump.fun experienced a sharp drop from July 28 to August 3. Weekly revenue fell to just $1.72 million, the lowest since March 2024.
The platform currently faces a $5.5 billion class-action lawsuit filed on January 30. The case was amended on July 23, with plaintiffs describing Pump.fun as an “unlicensed casino.”
The updated filing likens the platform’s structure to a “rigged slot machine,” claiming that early participants profit by offloading tokens onto later entrants.
