Pump.fun’s PUMP token has continued to decline despite large-scale repurchase programs, as sustained selling from major holders overwhelmed buyback demand. The PUMP token’s sharp December drop extended a broader downtrend and highlighted that buybacks alone did not stabilize price under persistent distribution.
Large-holder selling and market structure kept pressure on PUMP
Large holders were the primary drivers of the recent downturn. In December, a whale sold $6.3 million worth of PUMP, accelerating the intramonth decline and reinforcing wider sell-side momentum. 3.8 billion PUMP tokens valued at $7.57 million were transferred to FalconX, reflecting a $12.22 million loss versus earlier acquisition prices over three months. The December 23 transfer to FalconX illustrated forced or discretionary de-risking even at realized losses. Earlier, 2.72 billion PUMP tokens valued at $7.74 million reached FalconX on December 13, realizing a $6.21 million loss for the seller. The repeated large deposits to FalconX signaled sustained liquidity-seeking behavior rather than strategic long-term holding.
PumpFun is allocating 100% of its revenue to $PUMP buybacks, amounting to nearly $1M in daily buy pressure.
Despite this, the token is down over 80% from its ATH and about 30% below its previous all time low (pre-buybacks).
This clearly shows that buybacks, no matter how… pic.twitter.com/oMrq9HHApx
— DoctorDeFi (@DoctorDeFi) December 23, 2025
On-chain metrics show a sustained exit by large investors. Wallets holding more than 1 million PUMP tokens reduced balances by 13.07% in the 30 days to late December. This large-wallet drawdown indicated a coordinated or persistent reduction in exposure that intensified sell pressure beyond what buybacks could absorb.
Pump.fun has pursued an aggressive buyback strategy since July 2025, allocating 100% of its revenue to token repurchases. The program spent more than $218.1 million cumulatively, including $32.7 million in late December and $12.7 million earlier in the month, with daily buy pressure nearing $1 million at times. The repurchase program demonstrated capacity to generate short-term support, but it did not deliver a durable reversal under sustained selling. A prior $31.3 million buyback in July 2025 produced a temporary 17% price uptick. That episode showed buybacks can move price tactically, yet the effect can fade when structural supply remains heavy.
Despite heavy repurchases, price and sentiment remained weak, leaving PUMP more than 80% below its all-time high and about 30% beneath its pre-buyback all-time low. The magnitude of the drawdown underscored the limits of buyback-driven support when sellers remain concentrated and persistent. Overall crypto market capitalization fell about 30% since early October 2025, reducing risk appetite for high-volatility assets and tightening liquidity provision. A weaker macro market tape reduced marginal demand and raised the hurdle for buybacks to meaningfully change trend. PUMP’s outlook is further constrained by legal exposure tied to a $5.5 billion RICO suit and competition in the memecoin launchpad sector. Legal overhang and competitive pressure fed directly into investor risk assessment and market makers’ pricing posture.
Pump.fun’s repurchase program failed to offset concentrated selling from large holders and a damaged market backdrop, leaving PUMP materially depressed despite substantial buyback spend. For traders and managers, the key takeaway is that buyback size alone did not neutralize whale liquidity, making large-holder balances and exchange inflows the most actionable near-term signals to monitor.
