Can Pump.fun’s new buyback plan push PUMP higher after 10% surge?
AI Sentiment: 72/100 Bullish
This score is generated through AI-driven analysis of the article's content.
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Buy PUMP. The company burned all previously bought-back tokens (~36% of circulating supply), which removes a major source of future sell pressure and tightens supply. The shift from 100% revenue buyback to 50% net buyback reduces “volume-dependent” hype and should make the program feel more credible, supporting a higher floor after the +10% move. Trade with support at ~$0.0017; target ~$0.0021 first, then ~$0.0030.
Key Risk: Pump.fun’s new 50% buyback isn’t enough to sustain demand—if platform revenue/volume falls, the burn’s impact fades and PUMP rolls over.
Sell SOL memecoin launchpad beta: short/underweight memecoin launchpad tokens that rely on the same “fee + buyback” narrative but without a comparable burn. Use a basket short (or underweight) of Solana memecoin ecosystem names versus SOL. Rationale: PUMP’s supply shock and credibility upgrade can pull liquidity toward PUMP, leaving peers lagging even if the broader memecoin market is flat.
Key Risk: The whole Solana memecoin complex rallies hard—liquidity rotates into the entire group, lifting peers despite PUMP’s outperformance.
- Pump.fun ends 100% revenue buyback program.
- The memecoin project burns $370 million $PUMP tokens.
- Native token jumps 10% as Pump.fun unveils new buyback model.
Pump.fun, the popular Solana-based memecoin launchpad, has seen the native token PUMP surge nearly 10% following a major pivot in its tokenomics strategy.
The platform revealed it has burned all previously bought-back $PUMP tokens, valued at roughly US$370 million (approx. $515.8 million), while terminating its aggressive 100% revenue buyback program.
Instead, Pump.fun will adopt a more sustainable net revenue buyback and burn mechanism for the next 12 months.
PUMP led the top altcoin gainers in the past 24 hours across the top 100 coins by market capitalization early Wednesday.
Pump.fun burns 36% of supply amid tokenomics overhaul
A statement released on X notes that Pump.fun has permanently removed from circulation all $PUMP tokens acquired through its prior buyback initiatives.
These tokens, accumulated via 100% platform revenue allocation, totaled around US$370 million (approx. $515.8 million) at current market valuations.
The burn eliminates nearly 36% of the circulating supply and significantly reduces potential sell pressure from held reserves.
“We have burned ALL bought back $PUMP tokens, around $370M worth of purchases (~36% of circulating supply), to gain trust with our community,” the project said in a statement.
On top of that, we have initiated a programmatic buyback *and burn* scheme at 50% of revenue for the next year to instill trust, predictability, and sustainability for the underlying ecosystem - and to remove as much of the supply from circulation as possible.
This move follows Pump.fun's explosive growth since its 2024 launch, where it facilitated thousands of memecoin deployments on Solana, generating billions in trading fees.
The 100% buyback model previously funneled every dollar of revenue directly into $PUMP purchases, driving the token's price surges during bull runs.
However, critics argued it created unsustainable dependency on platform volume.
Shifting to 50% net revenue buyback and burn for the next year allows Pump.fun to redirect half of its revenues toward platform development, liquidity enhancements, and operational scaling.
PUMP price outlook
The PUMP token's price reacted swiftly to supply burn news, rising nearly 10%.
The memecoin traded to highs of $0.0020, up from around $0.0017, with daily volume jumping 220% to US$185 million (approx. $257.9 million).
Meanwhile, Pump.fun’s market cap rose to over US$643 million (approx. $896.3 million).
Across X, sentiment around the token burn and what it means for PUMP was largely bullish.
However, some have lamented the move, arguing it would have been more impactful to holders if an airdrop had happened instead.
From a technical analysis perspective, key support lies at the $0.0017 level.
On the upside, primary resistance looms at $0.0021 and then $0.0030.
Bullish catalysts include the US$370 million (approx. $515.8 million) burn's deflationary impact as well as bullish sentiment around Pump.fun's dominant market share in memecoin launches.
PUMP reached an all-time high above $0.012 in July 2025, before slipping to an all-time low of $0.0011 in October.
Despite the latest uptick, it's still more than 84% off its peak.
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