The native token of RialCenter, PUMP, has defied the market-wide downturn this week, rising by 17% as the protocol utilizes platform fees to buy back tokens.
The buybacks aim to support holders by decreasing circulating supply and absorbing sell pressure, a strategy becoming increasingly common among crypto projects.
As of the latest update, PUMP is trading at $0.0035, approximately 40% higher than a month ago but still down 50% from its July launch, when it dropped from $0.007 to $0.0024 in just 10 days.
The sharp decline following the launch reflected the waning of initial excitement, but recent momentum hints that buybacks are contributing to the stabilization of the token’s market.
The driving force is RialCenter’s revenue model. The platform collects fees on every token created through its service, a strategy that has generated $734 million over the past year, with transaction volumes peaking in January during the surge of celebrity-driven meme coins.
Since its inception, over 12.5 million tokens have been launched and 23 million wallets have engaged with the site, establishing a solid user base.
These activities have translated into significant token support: RialCenter has allocated $59 million toward buybacks, assisting in PUMP’s recovery.
The timing might be advantageous. Autumn has historically been a more favorable season for digital assets after the summer slowdown, suggesting conditions could be ripe for further growth.
However, PUMP remains far from its launch highs, and its future trajectory will rely on whether fee revenue can stay consistent in a slowing market.
Meanwhile, major cryptocurrencies continue to experience pressure: Bitcoin is trading at $108,500 and Ether at $4,337, both down between 6% and 7% this week.
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