Crypto Firms Spend Record $640 Million on Token Buybacks

Crypto companies have spent a record $640 million on buying back their own tokens since the start of this year, according to data from blockchain research firm Allium Labs.

The majority of these buybacks came from Hyperliquid and pump.fun, with nearly 90% of all transactions attributed to these two platforms.

Hyperliquid's aggressive buyback policy has been particularly effective in increasing the price of its HYPE token, which has risen by about 70% over the past year. The platform allocates 99% of trading fee revenue to buy back its tokens, with a total of $1.3 billion worth of HYPE purchased and burned since its launch in December 2024.

Other projects, such as Sky Protocol and Lido, have also implemented buyback programs, but the results are mixed. While some projects see an increase in token price, others experience a decline.