Crypto31 August, 20262 min read
Crypto Firms Spend $638 Million on Token Buybacks, Led by Hyperliquid and Pump.fun
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Crypto firms spent about $638 million on token buybacks year-to-date, a record high. Hyperliquid and Pump.fun accounted for nearly 90% of buybacks.
6 outlets told this the same way.
Record buyback spending
Crypto firms spent $638 million on token buybacks this year, a record high, as they repurchased their own issued cryptocurrencies to support token prices by reducing circulating supply amid a market downturn. The Financial Times cited data from blockchain analytics firm Allium Labs showing buyback spending this year has already surpassed the $545 million recorded in the same period last year and far exceeds the $366,000 for all of 2024. The buyback wave is primarily driven by perpetual futures exchange Hyperliquid and meme coin launch platform pump.fun, which together account for nearly 90% of total buybacks.
Hyperliquid allocates 99% of its trading fee revenue to repurchasing its native HYPE token, and since its launch in December 2024 it has cumulatively repurchased and burned $1.3 billion worth of tokens. Matt Hougan, Chief Investment Officer at crypto asset manager Bitwise, said aggressive buybacks are the primary reason for HYPE's strength, giving investors confidence that benefits of increased blockchain activity will be reflected in token prices.
Effectiveness questioned
Despite the record spending, the sources describe mixed results, with decentralized exchange Jupiter investing nearly $14 million this year repurchasing its own token while its price has still fallen 55% over the past year.
Chainlink also executed buyback programs, but its LINK token has halved in dollar-denominated value over the past year.
The case of Helium highlights limits, with the platform deciding to terminate its buyback program in February as co-founder Amir Haleem said, "The market doesn't seem to care about projects buying back tokens. We're no longer wasting money."
Allium Labs head of research Elton Shehdula said digital asset companies implement buyback programs to demonstrate confidence, adding, "A buyback program alone doesn't necessarily mean it's a good program."
The sources also place the buyback push against broader market pressure, noting Bitcoin remains approximately 38% below its all-time high while XRP and Solana have fallen roughly 60%.
Regulatory shift and next moves
The sources link the surge in token buybacks to a shift in the regulatory environment, contrasting the caution during former SEC Chair Gary Gensler’s tenure with a friendlier stance toward cryptocurrencies from regulators during the Trump administration. In that context, the Jerusalem Post says the regulatory shift helped executives feel comfortable launching buyback programs, while it also notes Hyperliquid allocated 99% of its revenue from trading fees to buy back and burn its HYPE token. The same source reports that Sky Protocol bought back $26 million worth of tokens and that co-founder Rune Christensen said buybacks ensure token holders’ interests align with the protocol's long-term goals.
The Financial Times framing in the sources ties the record buyback wave to a prolonged market slowdown, with Bitcoin about 38% below its peak level and other tokens such as XRP and Solana down about 60%. Looking ahead, the BigGo Finance report says Lido announced in August it will initiate a regular buyback program once conditions—including reaching $40 million in annualized revenue—are met, aiming to more directly tie token prices to protocol operating performance.