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- Pump.fun has spent $62.6M repurchasing PUMP tokens, lifting prices.
- The platform now counts 70,800+ holders and regained 73% Solana market share.
- A $5.5B lawsuit threatens to overshadow its recent growth.
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Pump.fun, the Solana-based memecoin launchpad, has repurchased more than $62.6 million worth of its native token, PUMP, according to Dune Analytics. The initiative has absorbed over 16.5 billion tokens at an average cost of $0.003785, aiming to reduce sell pressure and stabilize market performance.
Buybacks Funded by Platform Revenue
The buyback program is powered by Pump.fun’s platform-generated revenue, primarily fees collected from new memecoin launches. Data shows daily buybacks have ranged from $1.3 million to $2.3 million in recent days, despite a notable revenue slump.
According to DefiLlama, Pump.fun has generated over $775 million in lifetime revenue. However, between July 28 and Aug. 3, the platform reported just $1.72 million in weekly revenue—its lowest since March 2024.
Still, the buybacks appear effective. PUMP has risen 12% in the past month and nearly 9% this week, trading at $0.003522. From its August low of $0.002282, the token is up 54%.
Growing User Base and Market Competition
Onchain data shows Pump.fun’s unique holder count has climbed above 70,800, with smaller wallets under 10,000 PUMP making up nearly half of all distribution. This suggests growing grassroots adoption, even as competition intensifies.
In July, Solana rival LetsBonk briefly overtook Pump.fun in daily revenue. However, Pump.fun has since regained dominance, holding a 73% market share and posting $4.5 billion in weekly trading volume, according to Jupiter. By comparison, LetsBonk’s share has dropped to under 9%.
Also Read: Pump.fun Buys Back $58M in PUMP Tokens, Sparking 20% Price Rally on Solana
Legal Pressures Mount
Despite its market recovery, Pump.fun faces mounting legal challenges. A class-action lawsuit first filed in January and amended in July accuses the platform of operating like an “unlicensed casino.” Plaintiffs allege Pump.fun uses “guerrilla marketing” to create artificial hype, with claims that investor losses have topped $5.5 billion.
Pump.fun’s aggressive buyback strategy has bolstered PUMP’s price and expanded its user base, helping the platform reclaim its lead in Solana’s memecoin ecosystem. However, with ongoing legal battles and increasing competition, the sustainability of its growth remains uncertain.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
