- PUMP crashes 13% even after massive $31M buyback push.
- Trading volume spikes to $692M, signaling intense market activity.
- Pump.fun commits protocol fees to sustain future token buybacks.
PUMP, the native token of Solana-based memecoin platform Pump.fun, dropped 13.57% in the last 24 hours. The decline saw the token fall from a recent peak above $0.00444 to a low of $0.00371, signaling sustained selling pressure after previous gains.
Trading activity remained high even as the value fell, with the daily volume increasing by 24.77 percent to end at $692.38 million. This brought the volume to market cap ratio to an ambitious 52.5 percent, meaning traders were indulgent despite the low prices.
The price slide was represented by the token’s market capitalization, which decreased to $1.31 billion. This increase in volumes indicates that further speculation and volatility relating to the token’s short-term trend are still present.
Last week, the Pump.fun platform landed in the headlines after conducting a significant $31.3 million buyback activity. The team deposited 187,770 SOL in a special wallet and started acquiring All the PUMP at a mean cost of $0.0064.
That action temporarily increased the token’s price by 17 percent, peaking at the record price of 0.0067, after which sellers entered the market.
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Source: CoinMarketCap
Buyback Strategy Fails to Halt Decline Amid Strong Speculative Trading
In line with its commitment, the platform pledged to use 25% of its protocol revenues for regular buybacks. On July 18, Pump.fun reported daily fees of $968,000, indicating ongoing revenue to support its market strategy.
As trading activity intensifies, PUMP’s reach continues to grow. On July 18, LCX Exchange listed the $PUMP/EUR trading pair and opened deposits, offering broader access to European traders.
The coin attracted substantial momentum on its release, obtaining $600 million in its initial coin offering. The liquidity of 15 percent of tokens was sold publicly, and 18 percent of tokens were sold through a private sale, increasing fully diluted valuation to $4 billion.
In addition to trading, Pump.fun has diversified its platform functions to maintain user engagement. The team recently unveiled a new community tool, community takeovers, where contributors can take over idle projects by redirecting creator fees.
The purchase of Kolscan, a wallet tracker built on Solana, reinforces the protocol’s trading supervision powers.
Despite a high-profile buyback and substantial trading volume, PUMP remains under pressure. The token’s volatility continues to attract traders as Pump.fun works to support price and expand its ecosystem.
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