Pump.fun, a Solana-based platform where users can create and trade memecoins, has seen its PUMP token rally more than 15% in the last 24 hours following a huge buyback program that has given investors confidence.
At the time of writing, PUMP was trading at $0.004053, up 12% in 24 hours, according to CoinMarketCap. The rally followed Pump.fun’s announcement that it repurchased $8.42 million worth of tokens between August 5 and 11, representing 97.29% of its weekly revenue.
Massive Buyback Program Fuels Price Surge
Since launching the program, the company has bought back $33.61 million in PUMP, equal to 0.741% of its 1 trillion total supply. Buybacks, which are prevalent in both stock and crypto markets, lower the supply in circulation, which could be used to push the prices up.
The platform’s strategy has also reinforced its dominance in the memecoin launchpad sector, where creators can easily mint new tokens. Data from Dune Analytics shows that on August 11, Pump.fun launched 26,836 new tokens, accounting for 73.6% of all memecoins created that day and overtaking rivals LetsBonk and Bags.
Analysts say if the buyback trend continues, PUMP could soon test higher resistance levels, marking a strong resurgence in the ongoing “memecoin wars” on Solana.
Also Read: PumpFun Buys Back PUMP Tokens Amid Selling Pressure from Whales
