Solana News Today: Pump.fun’s Buybacks Absorb Supply, Spark $PUMP’s Comeback
Pump.fun, the Solana-based memecoin launchpad, has intensified its buyback strategy , with cumulative repurchases reaching $60 million as of August 28, 2025, according to data shared by @MilkRoadDaily. The initiative, which has seen over $10 million spent in the last week alone, is characterized by a model that redirects 100% of the platform’s prior-day revenue back into the $PUMP token. This automated buyback mechanism is designed to reduce circulating supply and absorb sell pressure, creating upward momentum for the asset. The buybacks have removed approximately 4.2% of the total circulating supply to date, signaling a sustained effort to stabilize and potentially reinvigorate the token's value [1].
The aggressive buybacks have coincided with a notable price recovery for the $PUMP token. Over the past month, its price has risen by more than 30%, reaching $0.0040 as of late August, despite having fallen to a 50% discount from its July debut price of $0.007 [4]. The recent price rebound has been supported by increased trading activity, with the token’s market capitalization climbing back above $1.29 billion and its fully diluted valuation reaching over $3.6 billion [3]. Daily trading volume has exceeded $335 million, underscoring the token’s liquidity and investor interest. This revival has been attributed in part to Pump .fun’s dominance in the Solana ecosystem, with the platform capturing 62% of the sector’s revenue and attracting over 38,000 daily active users [4].
The buyback strategy is also reshaping market dynamics within the Pump.fun ecosystem. With over 12.5 million tokens launched since its inception, the platform has become a central hub for retail-driven memecoin activity. The success of tokens like $TROLL, which surged by 250% in August, highlights the speculative momentum generated by the platform [4]. Moreover, Pump.fun has allocated more than $59 million toward buybacks since the start of August, effectively absorbing supply and reinforcing price stability [5]. The platform’s ability to generate fees—reaching $734 million over the past year—has provided a consistent source of funding for these repurchases, particularly during periods of high demand for celebrity-driven meme coins like TRUMP and MELANIA [5].
While the buybacks have contributed to a short-term price rebound, questions remain about their long-term sustainability. Over half of the PUMP token supply is still concentrated in early wallets, and any sudden exchange inflows could lead to renewed volatility. Additionally, the broader crypto market remains under pressure, with Bitcoin and Ethereum both declining between 6% and 7% in the week leading up to August 29 [5]. This macroeconomic backdrop introduces uncertainty about the extent to which the buyback program can maintain its current pace without a broader market turnaround. Nevertheless, the timing of these efforts aligns with historical trends in digital assets, which often see improved performance in the fall months following a summer lull [5].
Traders and analysts are closely monitoring key technical indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), which currently reflect a bullish outlook. PUMP’s price has also broken above short-term moving averages and is approaching a critical resistance level at $0.00375. A sustained break above this threshold could signal a path toward higher prices, potentially revisiting levels last seen before the July selloff [4]. However, the concentration of early supply and macroeconomic volatility suggest that continued vigilance is necessary for investors.
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