Pump.fun's Token Pumps 9.6% as Buybacks Cut Supply

Pump.fun's native token, PUMP, has seen significant gains in recent days, rising to $0.0038 from its earlier price of $0.0034. This upswing can be attributed to the project's efforts to reduce supply by buying and burning tokens. In fact, over the past day alone, Pump.fun repurchased 240 million tokens.

The reduced supply has led to increased usage, with active addresses jumping to 1.2 million according to Defillama data. This surge in demand has helped PUMP reclaim some of its earlier losses and signal strengthening short-term momentum.

However, it's worth noting that speculation remains a driving force behind PUMP's price action. The altcoin's Open Interest rose to 4% while the derivatives volume surged 19%, indicating that investors are still betting on another potential slip. Nevertheless, if recent demand holds and pushes DI+ above 25, it could signal a bullish takeover, and PUMP may reclaim $0.004.