PUMP staged an impressive comeback on July 31, surging 27% in a single day as the token climbed from $0.0025 to a peak of $0.003267 before closing at $0.002929, according to CoinMarketCap data. The rally wasn’t entirely organic, though – on-chain analysis revealed that Pump.fun had funneled approximately 98% of the previous day’s platform fees directly into token buybacks.
This strategic move effectively reduced the circulating supply while trading volume exploded to $666 million, representing a 22% increase for the session. The buyback mechanism appeared to catch traders off guard, with many having written off PUMP following its turbulent launch period.
In the last 24H $PUMP has shot up 17% while $GP has gone down 16%
Daily launchpad volume 86.3% for @bonk_fun
Daily fees 242k for $PUMP and 469k for $GP$PUMP buy back is 0.022% of market cap$GP buy back is 0.071% of market cap – over 3x impact of $PUMP buy back pic.twitter.com/OcEJB5repu— travelfrog (@travelfrog2k) July 31, 2025
Overcoming a Brutal Launch
The recent surge represents PUMP’s most significant recovery since its post-launch meltdown, but the token carries considerable baggage from its rocky debut. Prior to this buyback-driven rebound, PUMP had tumbled below its $0.004 initial coin offering price, hammered by waves of early investor exits.
Blockchain records show that private sale participants dumped more than $160 million worth of PUMP tokens onto exchanges over the past week. Two major wallets alone liquidated 29.5 billion tokens, contributing to the massive sell pressure. BitMEX analysts had anticipated this pattern, noting that 60% of presale buyers either sold or transferred their positions immediately after the token went live.
The buyback strategy has provided temporary relief and shifted market sentiment in PUMP’s favor. Prominent crypto trader Machi Big Brother even opened a substantial long position following the revenue-recycling announcement, wagering that artificial supply reduction could outweigh the token’s weak fundamentals.
Sustainability Questions Remain
Despite the recent momentum, PUMP faces significant mathematical challenges going forward. The platform would need to maintain these aggressive buybacks continuously to counteract the remaining $29.5 million in whale holdings and the 37% of presale investors still underwater on their positions.
Technical indicators suggest PUMP could test the $0.004 resistance level if the current momentum continues, but the broader sustainability question looms large. Whether a memecoin built around viral pump mechanics can transform into a more stable asset remains unclear.
Market participants appear divided on PUMP’s prospects, with funding rates staying neutral – indicating that neither short sellers nor long buyers have developed strong conviction. The real test will come when buyback activity eventually diminishes, revealing whether this represents a genuine reset or simply another opportunity for early investors to exit their positions.
Market Implications
The PUMP buyback strategy could signal a shift toward more aggressive tokenomics in the meme coin sector, potentially influencing how similar projects manage supply and demand dynamics. However, the long-term viability of revenue-funded buybacks as a price support mechanism remains uncertain given the substantial overhang from early investors.
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