Crypto Projects Spend Record $638 Million on Token Buybacks Amid Mixed Results
Crypto projects have spent a record $638 million buying back their own tokens this year. The majority of this amount, around 90%, comes from just two projects: Hyperliquid (HYPE) and Pump.fun (PUMP). These two projects have seen significant gains since January, with HYPE more than doubling in value.
Hyperliquid has been particularly aggressive with its buybacks, routing almost all of its protocol and trading fees into repurchasing HYPE. It has already retired $1.3 billion worth of the token since December 2024. Meanwhile, Pump.fun uses half of every dollar it earns to buy back PUMP on the open market and permanently burn the tokens.
The results of these buybacks have been mixed. While HYPE has gained 217.9% since January 1 and set a record price of $86.71 on August 27, other projects have seen far weaker returns. SKY added 20.1%, JUP gained 9.3%, while LINK fell 7.6% and LDO dropped 39%. However, it's worth noting that the broader crypto market rally in August may have contributed to these results.