The Pump.fun business model is making profits at a much quicker pace than it is spending on narratives. According to the recent data, the platform’s annualized revenue has hit $344 million, with the network earning approximately $944,000 every day for the past three months.
Meanwhile, more than $407 million worth of PUMP tokens have already been bought back and removed from circulation.
In simple terms, PUMP is no longer relying solely on speculation. The platform is generating enough cash flow to consistently return value to token holders.
Approximately half of the revenue is returning
According to AMBCrypto’s close analysis on the network data, over 50% of its revenue is allocated to token buybacks. This cements the network’s long-term project of reducing circulating supply while at the same time boosting its volatility.
Every day when the platform generates income, some part of the income is spent on buying PUMP coins from the market before destroying them.
The impact of the process has been significant. Up until now, 149 billion PUMP tokens have been destroyed, thereby covering almost 15 percent of the entire circulating supply.
The process does not guarantee higher prices. However, it creates a steady source of demand regardless of broader market conditions.
How are network users reacting to the developments?
Normally, buybacks are only effective if the underlying business continues generating revenue. At least for now, that does not seem to be the case.
The number of active addresses is still high. In most cases, it has exceeded 7,000 users per day throughout the past few months. The consistency matters since it suggests that the platform’s revenue is being supported by actual network activity rather than a short-lived spike in trading volume.
In other words, the allocation of a bigger proportion of revenue on buyback seems to bear some fruit. If the activity sustains, the current bullish momentum could be accelerated.
Is $0.001698 next for PUMP?
On the daily chart, the token’s price action has just broken past the 20-period Simple Moving Average (20 SMA). The Bollinger Band’s divergence is wide enough, suggesting that the market still has more volatility for a potential explosive move. But the direction is not clear.
However, with the token Stochastic RSI now dropping below 25, which often points to an oversold market, the current bullish push could be prolonged. At press time the token had recorded a 10% surge and was trading at around $0.001495.
The resistance level at $0.001698 stands as the next target for the market buyer if the current bullish run is sustained.
All in all, Pump.fun is already generating nearly $1 million per day. If that pace continues, buybacks will continue removing supply regardless of short-term market sentiment. When combined with positive technicals, the projected bullish run continuation nears certainty.
Final Summary
- Pump.fun’s annualized revenue has surged to $344 million, with the platform generating nearly $944,000 per day over the past three months.
- More than $407 million has been allocated to buybacks, removing nearly 15% of PUMP’s total supply from circulation.
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