Token Buyback Bonanza: Only Two Projects Reap Rewards

Crypto projects have been aggressively buying back their own tokens this year, spending a record $638 million on repurchases. According to Allium Labs data, nearly 90% of this amount comes from just two projects: Hyperliquid (HYPE) and Pump.fun (PUMP). Since January, HYPE has more than doubled in value, reaching an all-time high of $86.71 last week.

Pump.fun uses half of its earnings to buy back PUMP on the open market and permanently burn the tokens. The project has deployed $442.94 million this way, burning 163.03 billion tokens - equivalent to 16.3% of the total supply.

The results are mixed when it comes to token prices. While HYPE and PUMP have delivered strong gains, other projects have struggled despite buyback activity. Sky Protocol (SKY) has added only 20.1%, while Lido (LDO) dropped 39%. The data suggests that aggressive buybacks can coincide with strong token performance, but do not guarantee it.