PumpFun’s PUMP token has lost nearly 35% of its value in the last month and has lagged significantly behind the overall cryptocurrency market.
This decline is occurring despite the platform's ongoing buyback program. Given this situation, the effectiveness of such mechanisms supported by revenue is starting to be questioned in the face of whale sales and the overall negative sentiment in the market.
Buyback-Based Demand Insufficient Against General Selling Pressure
Pump.fun initiated a buyback program for the PUMP token in July 2025, a development that occurred immediately after the token's launch. With this mechanism, the platform allocates 100% of its revenue to purchasing PUMP, thereby creating a regular and strong buying pressure every day.
Since the program's inception, the total amount of buybacks has reached approximately 218.1 million dollars. The network executed buybacks worth 32.7 million dollars in just the last 30 days.
In theory, token buybacks are generally seen as a bullish signal because they reduce the circulating supply and make demand support more sustainable in the long term.
However, even such an aggressive and revenue-supported strategy falls short of compensating for the overall market decline. Since the beginning of October, the cryptocurrency market has been battling against a strong headwind.
While the total cryptocurrency market cap has declined by nearly 30%, significant losses have also been experienced in leading assets, primarily Bitcoin (BTC) and Ethereum (ETH).
PUMP was also affected by this wave. The token has lost approximately 35% of its value in the last 30 days.
An analyst wrote: ‘PumpFun is creating an average daily buying pressure of about 1 million dollars by spending 100% of its revenue on PUMP buybacks. However, despite this, the token is trading more than 80% below its all-time high (ATH) and nearly 30% below the previous all-time low (ATL). This situation shows that no matter how aggressive, buyback programs have a limited impact on market declines, especially when the token's use case is weak or constrained.’
The decline continued unabated today; the altcoin dropped approximately 6.9% further. At the time of writing, its price was around 0.0017 dollars; this level had last been seen during the market-wide sell-off in October. Difficult days in terms of price are not yet behind.
The issues with PUMP have grown significantly due to whale movements. Recently, a prominent whale invested 3.8 billion PUMP tokens, which he held for three months, into FalconX with a portion valued at approximately 7.57 million dollars. This whale had withdrawn the tokens from Binance for about 19.53 million dollars and incurred an unrealized loss of 12.22 million dollars.
According to Nansen data, in the last 30 days, the balances of large investors – meaning wallets holding more than 1 million PUMP tokens – decreased by 13.07%. The fact that the large holders are selling with such serious losses indicates that confidence in the token is rapidly declining.
As a result, PUMP's chart shows that no matter how ambitious and revenue-supported the buyback program is, it will not be sufficient on its own to provide price support as long as the market is falling. As whale sales continue and investors' risk appetite decreases, buybacks alone will not offer long-term support in the market.
