Crypto Protocols' $1.4 Billion Token Buyback Spree Fails to Deliver

Crypto protocols have been using a significant portion of their revenue to buy back their own tokens. In 2025, they spent over $1.4 billion on token buybacks, with Hyperliquid accounting for approximately 46% of that total.

The protocol used nearly 97% of its trading fees to purchase HYPE, indicating a substantial commitment to buying back its tokens.

Other major protocols like Aave, Uniswap, Sky, Pump.fun, Aptos, and Solana are exploring similar strategies. They aim to support the value of their tokens by using protocol revenue for token buybacks or burning them.

The idea behind this approach is that reduced supply can lead to increased demand and potentially higher prices. However, recent data suggests that this strategy may not be as effective as expected.