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.
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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