Pump Fun Coin (PUMP) fell nearly 8.3% in 24 hours, trading around $0.00355 despite aggressive buybacks totaling $1.15 million this week. The drop places it among the market’s top daily losers, alongside Zcash, Aster (ASTER), and Story Protocol.
At first glance, the dip seems counterintuitive. The platform has now repurchased over $141 million worth of tokens, roughly 8.7% of the total supply, according to data shared on X by @PumpfunNewsfeed.
Yet, traders appear unmoved. The market’s reaction suggests deeper structural shifts may be at play beyond short-term tokenomics.
What’s Driving PUMP Coin Price Move
While Pump Fun Coin remains one of Solana’s top-grossing decentralized exchanges, ranking #2 by revenue over the last 30 days with $34.4 million generated, its daily active addresses have slumped to 69.6K, the lowest since Q1. That’s a 70% decline from its early-year highs, pointing to fading retail engagement.
This divergence—strong fee revenue, weak user growth—signals a consolidation phase. Whales continue to profit from the protocol’s fee loop, but grassroots activity is thinning out.
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Adding to the headwinds, legal scrutiny is now looming. A recently filed lawsuit accuses Pump.fun of operating as an “unlicensed casino”, citing $722 million in user losses from fraudulent launches. The complaint alleges that 98% of Pump Fun tokens are scams.
That context matters. Traders remember how similar crackdowns, think BitMEX in 2020, triggered months of sideways trading and sharp liquidity drops.
PUMP Price Outlook
On the chart, $PUMP price broke below key support at $0.0038, confirming a short-term bearish structure. Immediate resistance now sits near that same level, a classic “break-and-retest” zone that traders will be watching closely.
Momentum indicators show fading volume despite a 24-hour turnover of $289 million, suggesting much of the action is automated or arbitrage-driven. With a market cap of $1.25B and a circulating supply of 354B tokens, the current setup leaves little room for error: a further slip below $0.0035 could open the door toward $0.0032–0.0030.
That said, buyback pressure remains a wildcard. If the protocol maintains its revenue-to-purchase ratio, currently near 100% daily reinvestment, bulls could find footing again above $0.0038 and push for a recovery toward $0.0042.
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