The cryptocurrency project's token buyback reached a record 638 million USD this year

According to the Financial Times, blockchain data company Allium Labs reports that cryptocurrency projects have spent nearly $640 million to buy back their own tokens this year, amounting to $638 million, which is higher than $545 million during the same period last year, while the total for the entire year of 2024 is only $366,000.

The perpetual contract exchange Hyperliquid and the meme coin issuance platform pump.fun together account for nearly 90% of the total buyback amount. Allium Labs' research director Elton Shehdula stated that projects conduct buybacks for "image incentives" to demonstrate confidence in their tokens; reducing supply after buybacks becomes another lever to support token prices.

Hyperliquid uses 99% of its trading fee revenue for buybacks and cancellation of HYPE tokens, having repurchased and canceled tokens worth $1.3 billion since its launch in December 2024, with HYPE rising 70% in the past year. The decentralized finance platform Sky Protocol repurchased $26 million worth of tokens. Co-founder Rune Christensen stated that the protocol generated over $400 million in revenue in the past year, and buying back SKY tokens ensures that decision-makers remain aligned with the long-term success of the protocol.