Token Buybacks: A New Era of Crypto Fundamentals

Crypto projects are increasingly using token buybacks to connect protocol revenue with token value. According to Allium Labs data, groups have spent about USD 638 million on buybacks in 2026, compared with USD 545 million over the same period in 2025 and a mere USD 366,000 during all of 2024.

Hyperliquid and Pump.fun account for almost 90% of buybacks this year. Hyperliquid directs 99% of its trading-fee revenue toward purchasing its HYPE token. Since HYPE launched in December 2024, Hyperliquid has repurchased and canceled around USD 1.3 billion worth of tokens, resulting in a roughly 70% gain.

Elton Shehdula, head of research at Allium Labs, said there is an “optic incentive” for projects to conduct buybacks. “Once they buy those tokens, they’re essentially reducing the supply, which is another lever for supporting the token price,” he added.