The native PUMP token of the meme coin launchpad Pump.fun has plunged nearly 35% over the past month, significantly underperforming the broader crypto market. This decline persists despite the platform's aggressive buyback program, which has deployed over $218.1 million since its inception in July 2025, including $32.7 million in the last 30 days alone. The program allocates 100% of Pump.fun's revenue to purchasing PUMP tokens, creating substantial daily buy pressure.
However, this revenue-backed support mechanism has been overwhelmed by sustained selling pressure from large holders (whales) and a wider market downturn. A notable whale recently deposited 3.8 billion PUMP (worth approximately $7.57 million) into the FalconX exchange after holding the position for three months, realizing an unrealized loss of $12.22 million. Data from Nansen shows that balances of wallets holding over 1 million PUMP have declined by 13.07% in the past month.
The token's challenges have been compounded by increased legal scrutiny. A court recently allowed a wider class-action lawsuit to proceed against Pump.fun and related parties, alleging widespread token manipulation and significant retail losses. This legal uncertainty has further eroded trader confidence.
Analysts note that PUMP is down over 80% from its all-time high and about 30% below its previous low before buybacks began. Technical indicators show the token remains in a clear downtrend, with price action grinding lower toward crucial support around $0.00170. The broader crypto market context, with total capitalization down nearly 30% since early October, has provided a significant headwind, highlighting the limits of buyback programs during sustained bearish sentiment.
