Crypto projects spent a record $638 million on token buybacks. Since the start of 2026, platforms have directed funds toward these efforts. Hyperliquid and Pump.fun accounted for nearly ninety percent of total volume. This was reported by the Financial Times, citing Allium Labs. The data covers the period through August 25. Over the same period in 2025, volume totaled $545 million. In 2024, the figure reached just $366 thousand.
Hyperliquid accounted for approximately $370 million — representing fifty-eight percent of the combined total. The platform's built-in Assistance Fund mechanism automatically directs trading fees toward purchasing HYPE. Acquired tokens are burned in accordance with the platform's documentation, permanently reducing both the total and circulating supply. Pump.fun contributed nearly $200 million more, representing around thirty-one percent of total volume. Until the end of April, the platform directed all revenue toward purchasing PUMP.
The team revised the mechanism on April 28. Now approximately fifty percent of revenue is reserved for buybacks. Tokens are burned over the course of a year under the program. The remaining half of funds goes toward business development. At the same time, Pump.fun burned all previously purchased PUMP tokens. Their value was estimated at approximately $370 million, equivalent to thirty-six percent of the circulating supply. This figure cannot be directly compared with 2026 data, as the April burn included tokens accumulated over nine months.
Allium Labs CEO Elton Shehda commented on the situation. Token buybacks reduce circulating supply, creating additional market demand. However, the mechanism itself does not guarantee price appreciation. The Financial Times cites examples of unsuccessful programs — Chainlink and Jupiter tokens declined in value despite buybacks. Bitwise Chief Investment Officer Matt Hougan noted an important trend: investors are increasingly focused on protocol revenue, and projects are returning earnings to holders through buybacks and burns.
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This material is prepared for informational purposes only and does not constitute financial advice or a recommendation.