Hyperliquid and Pump.fun Account for Nearly 90% of Token Buybacks

In a significant move within the cryptocurrency sector, projects have collectively spent $638 million on token buybacks since the start of 2026. According to the Financial Times, Hyperliquid and Pump.fun are the primary contributors, accounting for nearly 90% of this total, as reported by Allium Labs.

By August 25, Hyperliquid had repurchased about $370 million worth of its HYPE tokens, representing approximately 58% of the overall buyback amount. The platform employs an Assistance Fund that automatically directs incoming trading fees to purchase and subsequently burn HYPE tokens, effectively reducing both total and circulating supply.

Pump.fun also played a pivotal role, contributing nearly $200 million, or around 31% of the total buybacks. Until late April, the platform utilized its entire revenue for about nine months to buy back PUMP tokens. A change in strategy on April 28 allowed Pump.fun to reserve around 50% of its revenue for ongoing buybacks and token burning throughout the year, while the remainder supports business development initiatives.

Additionally, Pump.fun undertook a substantial burn of previously acquired PUMP tokens, valued at approximately $370 million, which amounted to about 36% of its circulating supply. However, this figure reflects a buyback period extending into 2025, making direct comparisons challenging.

While these buybacks can help reduce the circulating supply and stimulate demand, Elton Shekhdua, head of research at Allium Labs, cautioned that they do not guarantee an increase in token value. The Financial Times highlighted examples like Chainlink and Jupiter, whose tokens have depreciated despite having buyback programs in place. Furthermore, Bitwise's CIO Matt Hougan remarked that investors are increasingly interested in protocol revenues beyond Bitcoin, with some projects returning income to token holders through buybacks and burns.