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PumpFun’s PUMP token has recorded a nearly 35% drop in value over the past month, significantly undercutting the overall cryptocurrency market.
This decline occurred despite the platform’s ongoing buyback program. This has raised questions about the effectiveness of revenue-based support mechanisms in the face of ongoing massive selling by large investors and a broader market decline.
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Demand led by buybacks is failing amid broader selling
Pump.fun has launched a buyback program of its original token PUMP in July 2025, and that’s it Soon after the token was launched. Under this mechanism, the platform allocates 100% of its revenue to the purchase of PUMP, creating continuous and significant daily buying pressure.
Since inception, buybacks have totaled approximately $218.1 million in purchases. saw the net Executed $32.7 million in repurchases during the last 30 days alone
The token buybacks are theoretical Usually at the topbecause they reduce circulating supply and provide continuous support for demand.
But this aggressive revenue-backed strategy was not enough to offset the impact of the broader market decline. Since the beginning of October, the cryptocurrency market has faced a growing headwind.
The total capitalization of the cryptocurrency market fell by almost 30%, with major assets such as Bitcoin (BTC) and Ethereum (eth) recording significant losses.
PUMP is not immune to this trend. The token has recorded a decrease of about 35% during the last 30 days.
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An analyst wrote: “PumpFun allocates 100% of its revenue to PUMP buybacks, resulting in a daily buying pressure of almost $1 million. Despite this, the token has recorded a drop of more than 80% from its high and about 30% below its previous lows before the purchase. The utility is weak or limited.”
The downtrend extended further today, as the altcoin fell an additional 6.9%, and at the time of writing, was trading around $0.0017, which is price It is not recorded by the wave Complete sale That happened in October.
PUMP’s challenges have been exacerbated by recent whaling activity. It has been reported that one of the prominent whales… With a deposit 3.8 billion PUMP, worth about $7.57 million, in FalconX after holding the position for three months. This whale withdrew tokens from Binance to the tune of $19.53 million, resulting in an unrealized loss of $12.22 million.
indicate Data Nansen notes that over the past 30 days, the balances of large investors, i.e. portfolios holding more than 1 million PUMP tokens, have decreased by 13.07%, and when large holders exit their positions with significant losses, this often reflects a decrease in confidence in the token.
PUMP’s performance highlights the limits of even aggressive revenue-supported compacts during periods of general market decline. As long as selling pressure from large holders persists and investors’ appetite for risk continues to weaken, buybacks alone are unlikely to provide sustainable price support.
