PUMP token recovers after first buyback by Pump.fun

Pump.fun has immediately taken care to protect its PUMP token from slumping. The platform started its first buybacks just a day after launching PUMP trading. 

Pump.fun stepped in with its first buyback, propping up the price of PUMP a day after its launch. PUMP recovered to $0.006 after on-chain evidence that the platform team intervened with SOL buyback. The token jumped by 22% in the past day, following a slow trading momentum.

Pump.fun spent 118,350 SOL to buy 2.99B PUMP and for now stores it in another wallet. 

In the past 8 hours, PumpFun has spent 118,350 $SOL to buy 2.99B $PUMP and has moved it to another wallet.

It has received 187,770 $SOL ($30.59M) (from fee wallets) and still holds 69,420 $SOL worth $11.48M and is likely to buy further $PUMP.

Addresses:

-… pic.twitter.com/wkGH6bhSPg

— Onchain Lens (@OnchainLens) July 16, 2025

Pump.fun is once again flush with SOL, after the rapid completion of the PUMP presale. Additionally, the platform retained some of its SOL from fees, after foregoing SOL sales for the past few weeks. The reserves show the potential to buy more PUMP over time, using a mix of fees and reserves from the presale. 

For now, Pump.fun has not mentioned a token burn program, and it remains uncertain how the PUMP reserves would be used. SOL also recovered to $164.02, boosting the ability of Pump.fun to reinvest its reserves.

The end goal of PUMP would be to share some of the platform’s revenues, while avoiding the fate of airdrop tokens. The buybacks started just after the initial whales liquidated their stake in the first hours of trading, while others took short positions, betting on a PUMP crash. 

PUMP remains a low-float token

Even without the buybacks, the PUMP token is not fully unlocked. The token reached a market capitalization of $2.35B, with a fully diluted value of $6.65B. 

PUMP is still viewed with skepticism, as it still has a high notional valuation in a low-liquidity market. The initial low liquidity and reliance on Raydium and Meteora pairs led to a 56% dip following the token launch. 

Later, PUMP recovered to $27.5M liquidity on its Raydium pairs. The token is still in its early price discovery stage, and some expect PUMP to grow its liquidity after launching more centralized pairs. 

PUMP traders return to long positions

After the initial wave of whales shorting PUMP, Hyperliquid’s statistics show a return to long positions. Nearly 70% of whale positions are long, suggesting a price recovery is expected. 

The token is still seen as reliable, despite mentions of potential insider whales. PUMP aims to repeat the utility of HYPE tokens, by sharing the revenues of Pump.fun and the PumpSwap DEX. 

A total of 89 whales took up PUMP positions on Hyperliquid, up from 75 on the first day of trading. PUMP saw $2.15M in short liquidations over the past 24 hours, trading against the initial wave of bearish whales.

The utility of PUMP will also be questioned in the coming days, as overall Pump.fun revenues have fallen. The meme platform is also shifting attention from its top meme assets to PUMP. During peak meme activity, the platform generated above $13M in daily fees. Currently, the fees reach $1.34M, with the occasional dip under $1M daily. Pump.fun is also outcompeted by LetsBonk, currently drawing in the bulk of meme activity.

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