4th September 2026
By Shubhii Verma
Crypto projects are accelerating token buybacks, with companies and decentralized protocols spending about $638 million repurchasing their tokens this year, according to Allium Labs data.
The figure is higher than the $545 million recorded during that period last year and represents a sharp increase from 2024, when buybacks totaled only about $366,000 for the year.
Why Buybacks Are Surging
Allium Labs research head Elton Shehdula said projects have an incentive to repurchase tokens because buybacks can demonstrate confidence and reduce supply. The strategy resembles corporate share repurchases, although crypto tokens can have different economic and governance structures.
Hyperliquid and memecoin platform pump.fun account for nearly 90% of buyback activity. Hyperliquid allocates 99% of its trading-fee revenue toward purchasing HYPE. Since launching in December 2024, the platform has repurchased and retired around $1.3 billion worth of the token. HYPE has gained about 70% over the past year despite weakness across the crypto market.
Other Crypto Projects Join
Sky Protocol has bought back approximately $26 million worth of SKY tokens, according to Allium. Co-founder Rune Christensen said the protocol generated more than $400 million in revenue over the past year and that buybacks can align token holders with its long-term success. SKY provides governance rights and has risen about 5% over the past year.
However, other buyback programmes have produced weaker results. Chainlink has conducted repurchases while LINK has lost roughly half its value over the same period. THORChain allocates 55% of revenue to THORSwap stakers and another 20% to buybacks, yet its token has also fallen by around 50%.
Lido announced plans in August to introduce recurring buybacks after reaching milestones including $40 million in annualized revenue. Its token, however, is down about 71% year over year and remains near record lows.
Buybacks Are Not a Guaranteed Recovery
Analysts caution that repurchases alone do not prove a project’s strength or guarantee higher prices. Investors are increasingly focused on whether tokens provide tangible economic benefits rather than relying on speculative narratives.
The regulatory environment has also become more supportive of crypto buybacks, encouraging some projects to adopt strategies used by traded companies.
For investors, buybacks can reduce circulating supply and signal confidence, but outcomes differ significantly. Evaluating revenue generation, buyback size, token utility, governance rights and broader market conditions may be more important than the repurchase headline alone.
