The native token of the Pump.fun platform, PUMP, has shown a notable recovery, regaining its Initial Coin Offering (ICO) levels to trade near $0.005. This resurgence follows initial selling pressure post-launch, with recent market activity suggesting renewed interest from significant investors, commonly referred to as “whales.” This interest has driven a substantial 110% growth from its local lows, shifting the market narrative.
Much of this renewed interest is evident on trading platforms like Hyperliquid, where PUMP has seen an expansion in open interest and spot trades, even surpassing activity on some Bybit trading pairs. Despite this uptick, market sentiment among whales on Hyperliquid remains polarized; over 51% reportedly maintain short positions, classifying PUMP among assets with a less bullish outlook. However, a countervailing trend is emerging, with some large-scale traders initiating leveraged long positions, signaling a potential shift in conviction. For instance, on September 8, 2025, a specific whale reportedly opened up to $6.3 million in long positions across multiple wallets, as observed by Lookonchain, indicating a high-stakes bet on the token’s continued appreciation.
Behind the token’s volatile journey lies the operational performance of the Pump.fun platform itself. In recent months, Pump.fun has proactively engaged in a token buyback strategy, acquiring over 5.84% of the total PUMP supply. This initiative, largely funded by daily fees, aims to reimburse creators and stabilize the token’s value. The platform’s fee generation has also seen a robust recovery; after dipping to lows of approximately $500,000 daily, recent figures show a surge to over $5.7 million in daily fees, a level not observed since February.
This improvement in platform economics provides a crucial backdrop to PUMP’s valuation. While the platform once recorded $500 million in token sales within just 12 minutes during its ICO, the subsequent unlock led to immediate sell-offs. However, with consistent operational improvements, including a habitual 16,000 to 24,000 daily token launches in August, the fundamentals appear to be strengthening. Comparing the platform’s potential to generate $1 billion in daily fees against PUMP’s current market value of $4 billion, some analysts suggest the token could be undervalued if selling pressure subsides and buybacks continue. The broader market sentiment, particularly the performance of the Solana (SOL) ecosystem, within which Pump.fun operates, could also provide additional tailwinds, with SOL recently expanding to $213.37.
Despite these positive indicators, the burgeoning ecosystem on Pump.fun is not without its challenges. On-chain data indicates that some new token projects launched on the platform still carry the risk of “rug pulls,” often crashing shortly after reaching peak valuations. To mitigate these risks and foster a more sustainable environment, Pump.fun has implemented initiatives such as Project Ascend, which boosted creator compensations tenfold, and has also reportedly begun paying early token startups for marketing and social media presence. These efforts underscore the platform’s commitment to nurturing more legitimate and enduring projects within its ecosystem, even as it navigates the inherent speculative nature of decentralized finance.
Former Wall Street analyst turned crypto journalist, Marcus brings a decade of expertise in trading strategies, risk management, and quantitative research. He writes clear, actionable guides on technical indicators, portfolio diversification, and emerging DeFi projects.