Pump.fun, a prominent Solana-based launchpad, has executed an aggressive buyback program for its native token PUMP, removing 35.28 billion tokens from circulation at a cost of approximately $160 million. This represents 10% of the circulating supply and 3.53% of the total supply, with analytics from Kairos Research highlighting that more PUMP has been bought back than the entire liquidity on Binance.
The buybacks accelerated rapidly from early August, forming a parabolic trend from September onward, and show no signs of slowing despite market volatility. At the current rate, Pump.fun is projected to buy back 33% of the circulating supply annually, equivalent to 11.7% of the total supply each year.
Simultaneously, Pump.fun is expanding beyond its meme coin origins to include utility token launches, a move that has already driven a 7% price increase for PUMP in 24 hours, reaching $0.0046. The platform aims to address structural issues like liquidity gaps and unsustainable token models, with a goal to create wealth effects within its ecosystem. Since its debut in January 2024, Pump.fun has generated over $800 million in revenue, underscoring its profitability amid controversies and competition.
Despite a 30% price decline in October that pushed PUMP's market cap to around $1.6 billion, fundamentals strengthened with sustained buybacks and revenue growth. This sets the stage for a potential rebound, especially if bullish sentiment returns to the crypto market by year-end.
