PUMP Soars as Pump.fun Usage Increases: Can Solana Capitalize on the Memecoin Phenomenon?

Memecoins are gaining popularity once again.

Key Takeaways

Memecoin interest resurfaces, with Pump.fun usage hitting record levels.
Pump.fun's DEX volume doubled from January, indicating growing activity.
90% of revenue is used for PUMP token buybacks, positively impacting its price.
SOL's price recovered alongside memecoins, although it faced some corrections.
Future growth for both PUMP and SOL relies on continued memecoin interest and maintaining key support levels.

PUMP Soars as Pump.fun Usage Increases: Can Solana Capitalize on the Memecoin Phenomenon?

According to blockchain analytics firm Artemis, the number of returning users on the memecoin creation platform Pump.fun has reached a new high of nearly 20,000. These users, or wallets, had not been active for approximately six months until now, indicating a revival in the memecoin sector.

Pumpfun SOL Source: Artemis

Memecoins have played a vital role in driving overall trading volumes in Solana's decentralized exchange (DEX) and, subsequently, the performance of the native token SOL. The renewed interest in memecoins could provide a boost for both PUMP and SOL. AMBCrypto investigated how this recent surge in enthusiasm for memecoins has affected these two assets.

Double the Activity: Pump.fun's Revenue Surge

In January, data from DeFiLlama revealed that the trading volume on Pump.fun's DEX doubled, rising from $45 million to $106 million. During the same period, generated revenue increased by twofold from $700,000 to $1.5 million.

Pumpfun SOL Source: DeFiLlama

Remarkably, over 90% of the revenue generated is used to buy back PUMP tokens, leading to a positive impact on PUMP's price. The token has surged nearly 77% from a low of $0.0017 in December, trading at $0.0031 at the time of writing. By mid-January, the buyback program for PUMP reached nearly $11 million on average per week, marking levels not seen since September when market sentiment was less favorable.

Pumpfun SOL Source: Blockworks

This resurgence in interest is a clear indicator of the revival in memecoin activity, with PUMP's significant recovery being a key sign of this trend.

Impact on the Broader Solana Ecosystem

A recent report from AMBCrypto indicated that the supply of stablecoins on Solana reached a record high in January. Simultaneously, memecoins made up 63% of Solana's DEX volumes, highlighting a renewed appetite for risk among investors in early 2026. Consequently, the price of SOL rebounded by 16%, although some gains were lost afterward.

Outlook for PUMP and SOL

The correlation between memecoins and the price of SOL serves as evidence of how significantly they influence Solana's ecosystem. If demand for memecoins continues to grow, it could further support the recovery of both PUMP and SOL. For SOL, maintaining support at $120 is crucial, with immediate target price zones at $140 and $170, offering potential gains of 16% and 42%, respectively.

For PUMP, successfully reclaiming the $0.0037 support level could lead to targets of $0.004 and $0.005, indicating possible gains of 20% and 50%.

Pumpfun Solana Source: PUMP vs SOL price, TradingView

Conclusion