Crypto Projects Rely Heavily on Token Buybacks to Support Token Values
Crypto projects are increasingly using token buybacks as a way to create market demand and reduce circulating supply. According to Cointelegraph's reporting, $640 million has been spent on token buybacks in 2026 so far, with Hyperliquid and Pump.fun accounting for nearly 90% of the total.
The basic logic behind token buybacks is that when a project uses revenue to repurchase its own tokens, it creates additional demand in the open market. If repurchased tokens are then burned, supply contracts, which can increase scarcity and put upward pressure on price under favorable conditions.
Supporters of token buybacks say they give tokenholders a clearer line of sight to how the protocol is doing economically. They also argue that buybacks can improve tokenholder alignment by linking token value to economic activity rather than relying only on narrative or speculative momentum.