Analysis: Behind the Doubling in Value Each Month, Ecosystem Positive Feedback Is Its Main Driver

BlockBeats News, August 21, PUMP has been on a continuous rebound since hitting a low of $0.001 at the end of June. In the past 24 hours, it has increased by about 19% to nearly $0.004, with a 36% increase in the last 7 days, a 98% increase in the last 30 days, and a roughly 116% increase in the last 90 days.

In the past two days, the cryptocurrency market has seen a recovery, with Bitcoin briefly breaking through $79,000. Some meme coins such as PEOPLE, NEIRO, and BOME have made it to the top gainers list on Binance, following the common rhythm of "market recovery, meme coins leading the way." However, PUMP's price surge clearly preceded this round of the overall market increase by about two months.

The strong rise of PUMP this time is being primarily driven by its fundamentals: Pump.fun is forming a positive feedback loop of "revenue-buyback-traffic."

On-chain data shows that in the past 30 days, the platform has generated approximately $38.15 million in transaction fees, with revenue of around $29.19 million, ranking just below Tether, Circle, and Canton, and surpassing protocols like Hyperliquid, Polymarket, GMGN, and Tron. The appearance of the golden cross coincides precisely with the acceleration of revenue, the continuous repurchase and burn of PUMP, and the simultaneous return of platform trading users.

Pump.fun uses 50% of its revenue to repurchase and burn PUMP. The recent single-week fee revenue breaking $10 million (one of the better levels since the end of January) corresponds to potential buyback pressure in the range of about $5 million.

The platform recently launched Callout Rewards and reduced Solana transaction fees to 0% and cross-chain transaction fees to 0.1%, using the revenue advantage to subsidize traffic, competing with entry products like GMGN and Fomo for users. If the number of weekly active and daily active trading users continues to hit new highs, PUMP's market narrative may shift from simply being a "meme platform token" to more of a "trading gateway with high cash flow."

Overall, this upward trend is being driven by a combination of technical signals and positive fundamental feedback, with revenue scale and buyback mechanisms as the core supporting factors.