The PumpFun's Pump (PUMP) token has recorded a value drop of about 35% over the past month, showing significantly poor performance compared to the overall cryptocurrency market.
This decline has occurred despite the platform's ongoing buyback program. This situation has raised questions about the effectiveness of profit-based support mechanisms amid continuous selling by whales and the overall market downturn.
Buyback demand decreases... overall selling pressure
Pump.fun introduced the buyback program for the Pump (PUMP) token shortly after its launch in July 2025. In this mechanism, the platform allocates 100% of its total revenue to pump purchases, creating consistent and significant daily buying pressure.
Since the implementation of the buyback, the cumulative purchase amount has reached approximately $218.1 million. The network has executed buybacks worth $32.7 million in the last 30 days.
In theory, token buybacks are generally considered positive news. This is because they reduce the circulating supply and create ongoing demand.
However, even aggressive profit-based strategies like this have not been sufficient to offset the overall market downturn. Since early October, the cryptocurrency market has faced even more adverse conditions.
The total cryptocurrency market capitalization has decreased by about 30%. Most major assets, including Bitcoin (BTC) and Ethereum (ETH), have recorded significant losses.
Pump (PUMP) also did not escape this trend. The token has decreased by about 35% in the last 30 days.
"PumpFun allocates 100% of its revenue to the PUMP buyback, leading to approximately $1 million in daily buying pressure. Nevertheless, the token price has fallen more than 80% compared to its all-time high and is about 30% lower than its previous all-time low (before the buyback). This clearly shows that no matter how aggressively buybacks are conducted, the impact is limited in a market downturn and when the token's utility is weak or constrained." – An analyst
The downward trend continued today. The altcoin fell an additional 6.9%. As of the time of writing, it is trading near $0.0017, a level similar to that during the overall market crash in October.
The struggles of Pump (PUMP) have been exacerbated by recent movements from whales. A notable whale recently deposited 3.8 billion Pump tokens (worth approximately $7.57 million) into FalconX after holding them for 3 months. This whale withdrew tokens worth $19.53 million from Binance, incurring an unrealized loss of $12.22 million.
According to data from the on-chain data platform Nansen, the balances of large investor wallets holding more than 1 million Pump tokens have decreased by 13.07% in the last 30 days. The phenomenon of large holders bearing substantial losses and exiting often indicates a weakening trust in the token.
Overall, the performance of Pump (PUMP) reveals that even active, profit-based buybacks have limits during market downturns. With continued selling pressure from whale holders and weakened investor risk appetite, it is difficult to expect price support effects from buybacks alone.
