TL;DR
- Pump.fun allocated more than $205M to buybacks over five months and removed 13.86% of its token supply by using nearly all daily fees.
- The token is down 54.7% in three months and trades at $0.0027, while the derivatives market shows $183M in open interest dominated by weak long positions.
- Solana’s ecosystem cut meme-coin activity to 5% of DEX volume, and Pump.fun shifted more flow to PumpSwap to maintain high daily revenue.
Pump.fun has spent five months running a buyback program that absorbs almost all fees generated by its platform.
The project allocated over $205M to remove PUMP from the market and reduced the supply by 13.86%. This approach turned the protocol into Solana’s leader in buyback volume, with a system that injects between $2.7M and $3M per day into its native token. The strategy aims to support the price at a time when meme-coin activity is going through a sharp slowdown.
PUMP Drops 54.7% in the Past Three Months
The token’s behavior shows that the supply reduction has not been enough to counter the accumulated selling pressure. PUMP trades near $0.0027 and is down 54.7% in three months, even with continuous buybacks. Part of the community argues that selling SOL to fund these withdrawals limited the team’s ability to build strategic positions and generate stable long-term returns. Many holders remain underwater and receive no additional benefits, raising questions about how value is distributed within the protocol.
The derivatives market reflects the same pattern. Open interest sits around $183M and remains near its lowest level. Nearly 60% of positions are long, though recent activity shows frequent liquidations with no signs of a short squeeze. On Hyperliquid, 51% of traders are moderately long, while a growing share is positioning for another correction. Only ten active whales hold sizable positions, signaling lower institutional participation.
Meme-Coin Issuance Collapses on Solana
At the same time, Solana’s ecosystem is undergoing a structural shift. New meme-coin creation has plunged and now represents about 5% of total DEX volume, far from the 80% reached during peak activity.
Pump.fun redirected part of its flow toward PumpSwap to offset the drop in token creation, and still maintains a high baseline of daily revenue. The protocol operates with a level of fees that places it among the five most profitable applications in the ecosystem, even as the broader market shifts toward wrapped tokens, stablecoins, and more established memes
