Crypto projects have spent an estimated $638 million buying back their own tokens so far in 2026, highlighting a growing trend among blockchain platforms to use protocol revenue to support their token ecosystems.
According to data from Allium Labs, the total amount spent on token repurchases between January and Aug. 31 was 17% higher than the $545 million recorded during the same period last year. The increase is even more striking compared with 2024, when total buybacks across the sector amounted to just $366,000.
However, the majority of this activity has come from only a handful of projects. Hyperliquid and Pump.fun accounted for nearly 90% of all tracked token buybacks this year, showing that the trend is not yet widespread across the entire crypto industry.
Hyperliquid has emerged as the largest buyer of its own token. The decentralized derivatives platform directs 99% of eligible trading fees into its Assistance Fund, which automatically purchases HYPE tokens and permanently removes them from circulation through token burns.
Since launching in late 2024, Hyperliquid has reportedly spent around $1.3 billion buying and burning HYPE tokens. While that figure covers the entire period since launch and is separate from the 2026 total, it demonstrates the scale of the platform’s buyback strategy.
The project’s token traded around $63.35 at the end of August and had gained roughly 70% over the previous year. While buybacks may contribute to demand, market performance is also influenced by factors such as user growth, trading activity, and overall market conditions.
Pump.fun has become the second-largest contributor to token buybacks. The platform uses revenue generated from its token launchpad, exchange services, and trading products to buy and burn PUMP tokens.
Its current model allocates 50% of designated revenue to token repurchases. During one week in August alone, Pump.fun spent more than $5 million purchasing and burning approximately 2.15 billion PUMP tokens.
Despite the ongoing buybacks, Pump.fun has also been releasing previously locked tokens to team members and investors. These token unlocks increase the available supply and can offset some of the impact created by buybacks and burns.
Other projects are taking different approaches.
Sky Protocol spent approximately $26 million on SKY token buybacks during 2026. The project uses a system known as the Smart Burn Engine, which purchases tokens from the open market using surplus protocol revenue.
Meanwhile, Lido is considering a more cautious model. Under its proposed framework, buybacks would only begin if annual revenue exceeds certain thresholds. The plan would also place limits on daily and yearly purchases to ensure spending remains controlled.
While token buybacks have become increasingly popular, analysts caution that they do not guarantee higher prices. Unlike company stock buybacks, many crypto tokens do not provide ownership rights, dividends, or direct claims on project revenue.
The effectiveness of a buyback program also depends on what happens to the purchased tokens. Tokens that are permanently burned reduce supply, while tokens held in treasury wallets may eventually return to circulation.
As a result, investors are increasingly looking beyond headline buyback numbers and focusing on broader factors such as revenue growth, token emissions, insider unlocks, user adoption, and long-term demand.
With crypto projects generating larger revenues and experimenting with new economic models, token buybacks are becoming a more common feature of the industry. Whether they can consistently support token values over the long term will depend on the strength of the underlying platforms and their ability to maintain sustainable growth.
