Pump.fun buyback fails to raise PUMP price amid whale selling

PumpFun’s PUMP token has fallen nearly 35% in value over the past month, significantly underperforming the broader cryptocurrency market.

This decline occurred despite the platform’s ongoing buyback program. This raises questions about the effectiveness of revenue-backed support mechanisms in the face of sustained whale sales and widespread market weakness.

Lack of buyback-driven demand due to widespread sell-off

Pump.fun launched a native PUMP token buyback program in July 2025, shortly after the token’s debut. Under this mechanism, the platform allocates 100% of the revenue to the purchase of PUMP. This creates consistent and substantial buying pressure on a daily basis.

Since inception, these share repurchases have totaled approximately $218.1 million. The network deployed $32.7 million to b.Number of uibacks in the last 30 days only.

In theory, token buybacks are generally considered bullish as they reduce circulating supply and support sustained demand.

However, this aggressive revenue-driven strategy was not enough to offset the impact of the broader market downturn. Since early October, the crypto market has been facing increasing headwinds.

The market capitalization of cryptocurrencies fell by nearly 30%, and major assets such as Bitcoin (BTC) and Ethereum (ETH) suffered significant losses.

PUMP is not immune to this trend either. The token has fallen about 35% in the past 30 days.

“PumpFun is devoting 100% of its revenue to buybacks of PUMP, which equates to nearly $1 million in daily buying pressure. Despite this, the token has fallen over 80% from its ATH, hitting its previous all-time low (before the buyback). 30% below. This clearly shows that no matter how aggressive buybacks are, they have limited influence in market downturns, especially when the utility of the token is weak or constrained,” the analyst wrote.

The downtrend further expanded today, with the altcoin dropping another 6.9%. At the time of writing, it was trading around $0.0017, a price last seen during the market-wide sell-off in October.

Pump.fun (pump) cost performance. Source: BeInCrypto Markets

PUMP’s challenges are further exacerbated by recent whale activity. Recently, a notable whale deposited 3.8 billion PUMP worth approximately $7.57 million into FalconX after holding the position for 3 months. The whale withdrew $19.53 million in tokens from Binance, resulting in an unrealized loss of $12.22 million.

According to Nansen data, over the past 30 days, the balance of large investors, defined as wallets holding 1 million or more PUMP tokens, has decreased by 13.07%. When large holders exit their positions at large losses, it often reflects a decline in confidence in the token.

Overall, PUMP’s performance highlights the limitations of aggressive share buybacks backed by earnings during a broad market downturn. As long as selling pressure from large holders continues and investors’ risk appetite continues to decline, stock buybacks alone are unlikely to provide sustained price support.

This article “Pump.fun buyback fails to raise PUMP price amid whale selling” was first published on BeInCrypto.