Pump.fun’s native token, PUMP, staged a sharp comeback, climbing back to the $0.002 mark just days after tumbling to $0.001. On July 26, the altcoin surged 13%, trading around $0.00203 as strong volume up 157% to $92 million fueled the rebound. This bounce reflects heightened market activity and investor interest in the token.

Surpassing Hyperliquid in Daily Revenue

The renewed optimism follows Pump.fun's latest financial milestone: its daily revenue eclipsed that of rival protocol Hyperliquid. With $7.45 million earned daily, Pump.fun outpaced Hyperliquid’s $7.31 million, signaling impressive throughput within its ecosystem. Over time, the protocol has amassed $1 billion in fees and has $448 million in annualized revenue, underscoring its growing influence in decentralized finance.

Capital inflows remain solid as well. Defillama data reports a steady daily inflow of $5.6 million, indicating sustained confidence from investors actively deploying funds into the protocol.

Massive Buybacks Shrink Token Supply

Pump.fun has aggressively used its revenue to buy back tokens, with 154.57 billion PUMP repurchased so far, totaling roughly $414 million. The latest buyback alone saw 216 million tokens removed from circulation, equivalent to a 15.357% reduction in total supply. Such substantial capital deployment highlights the team’s commitment amid periods of market weakness.

Token buybacks have become a widely adopted strategy among crypto projects to alleviate selling pressure and revive upward momentum. The move often provides immediate relief to prices and can pave the way for continued gains.

Can the Bullish Momentum Last?

Technical indicators show signs of strengthening for PUMP. The MACD remains on an upward path, currently at 0.000118, suggesting buyers are taking control. The Relative Strength Vigor Index (RVGI) is approaching a bullish crossover, a key signal that could propel the token’s price to $0.0022.

However, holding above $0.0020 is key. Falling below this level might trigger a drop toward $0.0017, putting recent gains at risk. Investor attention now shifts to whether Pump.fun can maintain its momentum amid a highly volatile market environment.

Recent trends in altcoin price action further illustrate how narrow technical shifts can lead to swift market reactions, emphasizing the delicate balance PUMP must navigate.

This content is for informational purposes and does not constitute financial advice.