The PUMP token has recently navigated a period of intense market volatility, grappling with a substantial whale sell-off while simultaneously implementing strategic measures to bolster its long-term value. This interplay of external pressure and internal scarcity engineering paints a complex picture for the token's trajectory.
Significant PUMP Token Sell Pressure
A wallet linked to "77DsB…" initiated a considerable offloading of PUMP tokens, originally valued at approximately $25.39 million. This staggered distribution, which began in February and continued through early March, saw billions of tokens converted into USDC. The strategy involved repeated smaller swaps, routing around 14.3–14.4 million tokens per transaction into roughly $30,000 USDC fills, effectively reducing slippage while maintaining continuous sell pressure. This systematic liquidation, combined with broader market factors like declining platform revenue and memecoin fatigue, significantly deepened PUMP's price drawdown, leaving it down approximately 75% from its peak levels.
Strategic Buybacks Drive Scarcity
Despite the substantial sell pressure, the Pump.fun platform has actively worked to counteract this supply expansion through a robust buyback program. Utilizing platform revenue, Pump.fun has cumulatively purchased $297.8 million worth of PUMP tokens, reaching a significant milestone: 25.062% of the token's fixed 1 trillion circulating supply has now been offset. This aggressive reduction in available float fundamentally alters the supply-side dynamics. By absorbing a quarter of the circulating tokens, these continuous, revenue-funded buybacks are designed to establish a firmer supply floor, creating an "engineered scarcity" that aims to reinforce the token's long-term value against ongoing distribution and market headwinds.
