Data shows that, as of August 31, crypto projects have collectively repurchased approximately $638 million in native tokens this year, up from $545 million during the same period last year. Such protocol-revenue-backed buyback programs have significantly increased over the past two years, compared to just $366,000 for the entire year of 2024.
Hyperliquid and Pump.fun account for nearly 90%.
The Financial Times, citing data from Allium Labs, reported that Hyperliquid and Pump.fun together accounted for nearly 90% of the buyback volume in this year’s tracked sample. This indicates that the growth in buybacks is primarily driven by a few top projects and does not reflect a widespread adoption of similar mechanisms across the broader cryptocurrency market.
Among these, Hyperliquid is currently the largest revenue-driven buyback program. According to the protocol documentation, 99% of eligible trading fees are allocated to the Assistance Fund to automatically purchase HYPE tokens, which are then permanently burned.
According to reported figures, since its launch in December 2024, Hyperliquid has collectively purchased and burned approximately $1.3 billion worth of HYPE. However, this cumulative figure differs from the annual metric of $638 million for 2026 and cannot be directly added to it.
Burn and unlock occur simultaneously
Pump.fun uses revenue from its token launch platform, PumpSwap exchange, and other trading products to repurchase PUMP. The current mechanism allocates 50% of designated revenue for repurchase and burn, enforced through a locked smart contract.
For the week ending August 9, Pump.fun spent approximately $5.02 million to buy back and burn 21.5 billion PUMP tokens. According to reports, its cumulative buybacks have hedged approximately 15.7% of the initial supply.
However, buybacks do not necessarily mean reduced circulating pressure. In July, Pump.fun released approximately $86.49 million worth of vested PUMP tokens to 121 teams and investor wallets. Buybacks reduce supply, while vesting unlocks tradable tokens—these two actions move in opposite directions.
Sky and Lido have different conditions.
Allium’s annual data also shows that Sky Protocol repurchased approximately $26 million worth of SKY in 2026. Its on-chain Smart Burn Engine uses protocol surpluses to buy SKY on the open market. In March this year, Sky also reduced the pace of repurchases by decreasing the size of individual purchases and extending the intervals between transactions.
Lido's NEST proposal sets stricter conditions. It proposes that LDO buybacks will only be triggered if annual revenue exceeds $40 million, with 50% of the amount above this baseline allocated for purchasing LDO. Additionally, the proposal imposes a daily cap of $50,000 and a rolling 12-month cap of $10 million.
Repurchases alone cannot sustain price.
The report notes that the impact of buybacks on price depends on several factors, including whether tokens are permanently burned, whether they remain in the treasury, whether protocol revenue is sustained, and whether new token releases are occurring.
The results show inconsistent performance across different projects: Hyperliquid experienced strong HYPE price performance alongside revenue growth, while other projects saw continued pressure on token prices despite ongoing buybacks. For the market, buybacks function more as an income distribution tool rather than a standalone factor determining price movements.