Crypto Projects Spend Record Amounts on Token Buybacks Amid Market Slump
Crypto projects are pouring millions into token buybacks as the market slumps. According to Allium Labs, $638mn has been spent so far this year on repurchasing tokens, exceeding last year's total of $545mn over the same period. This marks a significant acceleration in buyback activity.
The largest contributors are Hyperliquid and pump.fun, which together account for nearly nine-tenths of total buybacks. Hyperliquid has directed 99 per cent of its trading-fee income towards purchasing HYPE tokens, with $1.3bn repurchased since its launch in December 2024.
Not all projects are experiencing the same success, however. Chainlink's LINK token is down by about half over the past year despite carrying out buybacks. Meanwhile, Lido said it will run recurring buybacks to tie its token price 'more directly to the Lido protocol's success' after hitting specific milestones.