Pump.fun's native token declined 35% over the past month despite the platform deploying $32.7 million in buybacks, revealing limitations of revenue-backed support during market downturns. The PUMP token fell to $0.0017, a price last seen during October's market-wide selloff, as whale selling overwhelmed aggressive purchasing mechanisms.

What Happened: Platform Buybacks

PUMP launched its buyback program in July 2025, with the platform allocating 100% of revenue to token purchases. The initiative has generated approximately $218.1 million in total buybacks since inception, creating consistent daily buy pressure.

The strategy failed to counter broader market forces.

The total cryptocurrency market capitalization declined nearly 30% since early October, with major assets including Bitcoin and Ethereum experiencing substantial losses.

One whale deposited 3.8 billion PUMP tokens valued at $7.57 million into FalconX after holding the position for three months.

The whale originally withdrew the tokens from Binance at $19.53 million, resulting in an unrealized loss of $12.22 million.

Also Read: Peer-to-Peer Transfers Account For 67% Of Ethereum Stablecoin Transactions, But Institutions Dominate Volume

Why It Matters: Market Dynamics

Data from Nansen shows balances of wallets holding more than 1 million PUMP tokens declined 13.07% over the past 30 days. Large holder exits at substantial losses typically signal deteriorating confidence in a token's prospects.

An analyst noted the disconnect between buyback intensity and price performance.

"Pump.fun is allocating 100% of its revenue to PUMP buybacks, amounting to nearly $1 million in daily buy pressure," the analyst wrote. "Despite this, the token is down over 80% from its ATH and about 30% below its previous all time low (pre-buybacks)."

The case demonstrates how sustained selling pressure from large investors can overwhelm even aggressive, revenue-backed support mechanisms during periods of weakened market sentiment.

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