PUMP surged 25% in 24 hours, outperforming top altcoins despite legal pressure on Pump.fun and Solana Foundation. Pump.fun buybacks cut over 20% of supply, supportingPUMP surged 25% in 24 hours, outperforming top altcoins despite legal pressure on Pump.fun and Solana Foundation. Pump.fun buybacks cut over 20% of supply, supporting

PUMP token jumps 25% even as Pump.fun, Solana face class action lawsuit

4 min read
  • PUMP surged 25% in 24 hours, outperforming top altcoins despite legal pressure on Pump.fun and Solana Foundation.
  • Pump.fun buybacks cut over 20% of supply, supporting PUMP as Solana’s price weakens on lawsuit concerns.
  • Strong revenue and expansion plans lift PUMP, even as broader crypto markets remain under pressure.

PUMP, the native token of Pump.fun, surged 25% over the past 24 hours, outperforming most top-100 cryptocurrencies by market capitalization, even as its associated platform and the Solana Foundation face mounting legal and reputational challenges.

The rally comes amid broader weakness across the cryptocurrency market and renewed scrutiny of memecoin launch practices on Solana.

Pump.fun and the Solana Foundation are facing a class action lawsuit alleging insider trading and questionable token launch practices, according to market data.

The lawsuit has introduced legal uncertainty for both entities and intensified scrutiny of Pump.fun, Solana’s leading memecoin launchpad.

Solana’s native token has experienced notable volatility in recent weeks, with price declines coinciding with the negative news flow surrounding Pump.fun.

Since launching in January 2024, Pump.fun has facilitated millions of token creations and generated substantial fee revenue, according to on-chain data.

However, market observers note that token launches on the platform have declined as legal challenges and unfavorable media coverage have escalated.

Pump.fun’s reputation shifted following a February 2025 report from analytics firm Solidus Labs titled “The 2025 Rug Pull Report: Rug Pulls and Pump-and-Dumps on Solana.”

The report found that the majority of tokens launched on Pump.fun, along with liquidity pools on Raydium, exhibited characteristics consistent with pump-and-dump schemes or rug pulls.

According to the report, the platform and related protocols extracted billions of dollars from investors during 2025, driven by a high rate of fraudulent token launches.

Solana’s price has pulled back from recent highs before stabilizing near key support levels.

Technical analysts report elevated volatility, with upside moves encountering resistance.

Despite the price weakness, on-chain indicators for Solana remain relatively strong, with developer activity, transaction volumes, and wallet engagement holding up compared with other Layer-1 blockchains.

Analysts suggest Solana’s recent price action has been driven more by narrative concerns than underlying fundamentals.

PUMP outperforms as buybacks support price

In contrast to Solana’s recent decline, the PUMP token has continued to rally.

The token’s 25% overnight gain extends a broader uptrend that has lifted prices roughly 60% over the past month and about 160% from lows near $0.0011 reached in October 2025.

Market participants have attributed some of the recent strength in PUMP, as well as other high-beta tokens such as HYPE, to capital rotation into riskier assets.

For Pump.fun, however, analysts point to project-specific factors as key drivers.

The platform has repurchased more than 20% of its total token supply over the past three months, tightening circulating supply without immediate dilution.

No token unlocks are scheduled until July, reinforcing the scarcity narrative.

Revenue generation has also remained robust.

Daily revenue continues to exceed $1 million and reached $2.16 million on Monday, highlighting the platform’s operational strength despite ongoing legal concerns.

Pump price prediction

Investor sentiment has been further supported by Pump.fun’s recent announcement of a dedicated investment arm aimed at funding ecosystem growth, alongside the launch of a $3 million hackathon designed to attract developers and enhance long-term utility.

Pump.fun Price ChartPUMP price chart by TradingView

While the broader cryptocurrency market remains under pressure, with Bitcoin struggling to hold above $90,000, Pump.fun’s token has shown relative outperformance.

Recent gains have reversed a prior downtrend, with a confirmed break above $0.003 shifting attention to resistance near $0.005.

Technical indicators suggest momentum could build if the token closes January above key support around $0.0025, potentially opening the way for a first-quarter move toward $0.007 or higher.

The post PUMP token jumps 25% even as Pump.fun, Solana face class action lawsuit appeared first on CoinJournal.

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