PUMP, the native token of meme coin launching Platform PumpFun, is surging again with it jumping over 20% in 24 hours. The rally came as PumpFun launched a new token buyback plan, using 100% of daily fees to purchase PUMP.
At the time of writing, PUMP was trading at $0.003173, with $597 million in daily volume and a market cap of $1.12 billion.
The spike came after a bounce from oversold territory. This was a breakout from the two-week descending channel for PUMP. The Relative Strength Index (RSI) was down at 20.95 due to extreme selling pressure. That led to PumpFun making it CoinMarketCap’s list of top gainers of the day since traders responded to its strategic buyback initiative.
Whales Reenter Despite High Risks
According to Lookonchain, a popular crypto trader known as The Machi Big Brother, still holds PUMP worth $13.3 million, even while sitting on a $4.47 million loss. The other whale, 8RwxXR, then decided to drop 17,542 SOL (around $3.16 million) to buy a little over 1 billion PUMP for $0.00297 apiece.
However, PumpFun faces growing competition. According to CryptoRank data shared on X, LetsBonk, a competing memecoin platform, is performing well. In July, LetsBonk generated $3.29 billion in volume, compared to PumpFun’s $1.75 billion.
Competition Heats Up Between Platforms
LetsBonk’s token accounts for 70% of the daily activity in the market. Just yesterday, it collected $1.27 million in fees, while PumpFun managed to gain $210,000. However, PumpFun buyback strategy seems to be helping it lift prices.
Despite slipping below its ICO price, PUMP has rallied over 50% since its listing. PumpFun’s strategy is grabbing traders’ attention, but the competitive spirit among memecoin platforms is reflective of broader trading and investor activity in alternative markets.
Note: This content is for informational purposes only and does not constitute financial advice. Memecoin investments carry volatility risks and are subject to price fluctuations. Readers are advised to exercise caution and refer to professional advice for any investments.
Also Read: Robinhood’s Revenue Jumps 45% to $989M as Crypto Trading Surges
