The Solana-based memecoin launchpad’s token is up another 20% today, and 43% on the week to a $5.6 billion valuation.
After a rocky start, pumpfun’s PUMP token is leading the altcoin market and is one of crypto’s top trending tokens, fueled by the protocol’s token buybacks.
PUMP dropped as low as a $2.4 billion fully diluted valuation (FDV) last month following its initial coin offering (ICO) valued at $4 billion, but has rallied 133% off the lows and is currently changing hands for $0.0056, or a $5.6 billion valuation, 40% above its ICO price.
The token’s strength is driven by pumpfun’s buyback mechanism, with the protocol using 100% of its daily revenue to repurchase PUMP on the open market. As a result, the platform has been buying nearly 1% of the circulating supply every week, and has offset 6.1% of the total supply so far.
Despite the cool-off in memecoin activity, pumpfun remains one of the top revenue generators in decentralized finance (DeFi), with the fourth-highest earnings over the last month, trailing just Tether, Circle, and Hyperliquid.
The ecosystem’s total value locked (TVL) has been consistently trending up since the launch of PumpSwap, the launchpad’s native automated market maker (AMM). The exchange’s TVL now sits at $298 million, making it the 14th-largest by TVL.
PumpSwap is the second-largest spot DEX by weekly revenue, trailing Hyperliquid’s spot markets with $3.36 million earned over the last seven days.
