Crypto projects spend record $638 million on token buybacks in 2026

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Crypto projects token buybacks

Hyperliquid and Pump.fun account for nearly 90% of buybacks

Hyperliquid operates the largest program among the projects tracked. The platform directs 99% of eligible trading fees to its Assistance Fund, which automatically purchases HYPE on the market before permanently burning the acquired tokens.

Since launching in December 2024, Hyperliquid has bought back and burned approximately $1.3 billion worth of HYPE. This is a cumulative figure and is not fully included in the $638 million total for 2026 because the two figures cover different periods.

As of August 31, HYPE was trading at around $63.35, up approximately 70% over the past year. However, the impact of buybacks cannot be separated from growth in trading activity, platform revenue and overall demand for the token.

Pump.fun has emerged as the second major source of buybacks. The platform uses part of the revenue generated by its launchpad, PumpSwap exchange and other trading products to purchase PUMP before burning the tokens. The current mechanism allocates 50% of designated revenue to buybacks.

At the same time, the buybacks are taking place alongside PUMP token unlocks. In July, the project distributed $86.49 million worth of tokens to 121 team and investor wallets, meaning that supply reductions from burns are partly offset by previously locked assets entering circulation.

Token buybacks do not guarantee price gains

Other projects use more limited models. Sky Protocol has spent approximately $26 million buying SKY since the start of the year. Its Smart Burn Engine uses surplus protocol revenue to purchase tokens on the open market, although the program's parameters were adjusted in March to reduce the pace of purchases.

Lido is considering a more conditional model. The proposed NEST mechanism would begin buying back LDO once annual revenue exceeds $40 million. The program would allocate 50% of revenue above that threshold to purchases, subject to a daily limit of $50,000 and a maximum of $10 million over 12 months.

Buybacks alone do not guarantee that a crypto asset will increase in value. Unlike corporate shares, many tokens do not give holders legal rights to a project's profits or assets, while the impact of a buyback program depends on factors including token burns, unlocks, demand and the protocol's financial performance.

Hyperliquid's growth is also drawing greater attention to the regulation of crypto derivatives. The Hyperliquid Policy Center has called on U.S. authorities to establish a unified regulatory framework for perpetual futures instead of applying different approaches to similar products.

The initiative comes as Hyperliquid's perpetual contract markets expand and attract growing attention from regulators and traditional exchanges. The organization argues that consistent rules would reduce regulatory disparities between trading venues and establish clear requirements for such instruments in the U.S.

Earlier, we reported that crypto exchange XT.com launched Hyperliquid Smart Money Copy Trading to allow users to copy trades from selected traders on the platform.

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