Crypto companies spent a record $640 million on token buybacks

Crypto companies have spent about $640 million on buying back their own tokens since the start of 2026. That is a record. Traders and holders of HYPE and PUMP are feeling it most.

According to Allium Labs, as cited by the Financial Times, the total was about $638 million. By comparison, for the same period in 2025 it was $545 million, and for all of 2024 it was only about $366,000. The difference is huge.

Why have token buybacks risen so sharply?

The scheme is simple. A project takes part of its revenue or reserves and buys its token on the open market. That reduces supply. Sometimes it also adds demand.

In crypto, this is similar to share buybacks by public companies. But there is an important difference. Tokens usually do not grant the same rights as shares. So the market looks not only at the buyback itself, but also at the source of the money and the program rules.

Allium Labs research head Elton Shehdula pointed to another effect. It is a “visual stimulus.” The project seems to be saying: we are making money, we are buying our token, we believe in it. But that is not enough for a long growth story. That is why the market is watching Hyperliquid and pump.fun so closely.

Why did Hyperliquid and pump.fun account for almost 90% of buybacks?

Two platforms effectively set the tone for the entire trend. These are Hyperliquid and pump.fun. Together, they account for almost 90% of all buybacks since the start of the year.

Hyperliquid took the most aggressive path. The platform directs 99% of revenue from trading fees to buying back HYPE. Since the token launched in December 2024, the project has bought back and burned about $1.3 billion worth of HYPE. Over the past year, HYPE has risen by about 70%.

There is another important detail here. According to CoinGecko, HYPE was trading at about $82.36, had a market cap of $18.24 billion and an FDV of $78.34 billion. Daily volume reached $1.01 billion. This is no longer a niche asset. And that is exactly why the market reads any buyback here very carefully.

“Aggressive buybacks have become one of the main reasons for HYPE’s growth,” said Matt Hougan of Bitwise Asset Management. He believes this policy convinces investors that activity on the blockchain is truly being converted into token value.

What does this strategy mean for the market?

On paper, it all sounds attractive. Fewer tokens in circulation, more demand, a higher price. But the market does not like simple formulas. Jupiter spent nearly $14 million on token buybacks, yet its price fell by about 55% over the year.

Chainlink also carried out buybacks. But LINK fell by about half over the year. Helium stopped its program altogether in February. Co-founder Amir Haleem said the market does not seem to reward such actions. That is the whole test.

• The amount of buybacks in 2026 is already about $638 million.

• In 2025, the same period saw $545 million.

• In 2024, the entire volume was only $366,000.

• Hyperliquid directs 99% of fees to buying back HYPE.

• Hyperliquid has already bought back and burned about $1.3 billion worth of HYPE.

• Jupiter spent nearly $14 million, but JUP fell by about 55%.

What does this mean for investors?

For investors, the main takeaway is simple. A buyback by itself does not make a token good. It only shows that the project has money and wants to support the price. After that, revenue, demand, unlocks and trust in the team decide everything.

In Hyperliquid’s case, this works better because the buybacks are tied to real trading revenue. But there are risks here too. The next HYPE unlock is scheduled for September 6, 2026. It involves 9.92 million HYPE worth about $812.94 million for core contributors. That is about 1% of the maximum supply. The market will definitely notice that amount.

There is another signal as well. According to HypeBasis, as of August 31, 2026, 15:11 UTC, the Assistance Fund system address held 46.91 million HYPE, or about $3.83 billion. Over 30 days, the balance increased by 719.16 thousand HYPE. This means buybacks still have real weight for now. But only time will show the long-term effect.

For Ukrainian traders, there is a practical lesson here. In stories like this, it is easy to buy not the token, but the market mood. So it is better to look at revenue, the unlock schedule and the share of buybacks in revenue. If you need a quick exit into hryvnia, you can sell Bitcoin on Monobank without extra steps.

Frequently asked questions

What is a token buyback in simple terms?

This is when a project takes part of its funds and buys the token on the market. That reduces the circulating supply. In crypto, it is similar to a share buyback, but without the same rights for holders.

Why is everyone talking about Hyperliquid specifically?

Because it spends 99% of revenue from trading fees on buying back HYPE. Since December 2024, the project has already bought back and burned about $1.3 billion worth of tokens. This is one of the most aggressive programs on the market.

Does a buyback guarantee price growth?

No. Jupiter spent nearly $14 million on buybacks, but the token fell by about 55% over the year. Chainlink also made buybacks, and LINK fell by half over the year. The market looks not at slogans, but at numbers.

The record $640 million shows that buybacks have become a noticeable trend in crypto. But a trend does not always equal quality. If you watch such tokens carefully, you can tell a strong business apart from a pretty wrapper.

This material is not financial advice. Cryptocurrency trading involves significant risks. Part of this text was prepared with the help of artificial intelligence based on public sources and reviewed by our editorial team.