Crypto projects have repurchased a record $638 million worth of their own tokens so far in 2026, with Hyperliquid and Pump.fun accounting for nearly 90% of the total. The growing use of protocol revenue for buybacks reflects a broader effort to return value directly to token holders and support token valuations.
- Crypto token buybacks reached a record $638 million in 2026.
- Hyperliquid contributed about $370 million, while Pump.fun accounted for nearly $200 million.
- HYPE and PUMP have significantly outperformed Bitcoin and the broader crypto market this year.
- Ethena is considering directing 95% of certain net revenue toward ENA repurchases.
- Analysts believe revenue-funded buybacks could become increasingly important across crypto.
Crypto Buybacks Reach Record Levels
Cryptocurrency projects are increasingly using their revenue to purchase their own tokens, pushing token buybacks to a new annual record.
Data from Allium Labs cited by the Financial Times shows that crypto projects have spent approximately $638 million on token repurchases so far in 2026.
That represents a significant increase from roughly $545 million during the same period in 2025 and just $366,000 in 2024.
Two projects account for most of the activity. Decentralized exchange Hyperliquid has reportedly spent around $370 million on HYPE buybacks, while memecoin platform Pump.fun has directed nearly $200 million toward PUMP repurchases.
Together, the two projects represent close to 90% of the industry’s reported buyback activity this year.
How Token Buybacks Work
Token repurchases operate somewhat like stock buybacks conducted by publicly traded companies.
When a company purchases its own shares, it can reduce the number of shares available on the market and potentially increase the value attributed to remaining shares.
Crypto protocols are applying a similar concept to their native tokens. Instead of distributing all protocol revenue elsewhere, projects can use a portion of their earnings to purchase tokens from the open market.
The strategy can create additional demand for a token while providing holders with a mechanism through which protocol activity may translate into token value.
Buybacks remain relatively uncommon across the crypto industry, but more projects are beginning to explore the model.
Hyperliquid and Pump.fun Tokens Outperform
The increased buyback activity has coincided with strong performance from both HYPE and PUMP.
According to the supplied TradingView data, HYPE has gained approximately 145% year to date, while PUMP has risen about 109%.
That performance stands in sharp contrast to Bitcoin, which was reported to be down roughly 10% over the same period, while total cryptocurrency market capitalization declined approximately 11.9%.
Although buybacks cannot be considered the sole reason for a token’s performance, the figures demonstrate how revenue-driven demand can become an important part of a project’s market narrative.
Hyperliquid Directs Most Revenue Toward HYPE
Hyperliquid has made token repurchases a central component of its economic model.
The protocol reportedly directs approximately 99% of its revenue toward HYPE buybacks.
Hyperliquid generated around $169 million in second-quarter revenue, according to the supplied figures, and allocated approximately $141 million toward purchasing HYPE during the quarter.
This approach directly links protocol activity with demand for the project’s native token.
As trading activity and revenue increase, the amount available for repurchases can potentially increase as well.
Pump.fun Uses Revenue for PUMP Repurchases
Pump.fun has also adopted a substantial buyback program.
The memecoin launchpad reportedly allocates approximately 50% of its net protocol revenue toward purchasing PUMP tokens.
The platform currently has an estimated $420 million annualized revenue run rate, based on its average daily revenue over the preceding 90 days.
The model gives Pump.fun another way to connect platform activity with its token economy, although the sustainability of such a strategy ultimately depends on continued protocol revenue and market conditions.
Ethena Considers Expanding the Buyback Model
The buyback trend is beginning to spread beyond Hyperliquid and Pump.fun.
The Ethena Foundation recently opened a vote on a proposed fee-switch mechanism that would direct 95% of the net revenue it receives from Ethena’s core business activities toward purchasing ENA tokens.
Following the proposal, ENA reportedly climbed approximately 10.7% in a single day.
If approved and implemented, the plan would provide another example of a crypto protocol using revenue to create recurring demand for its native asset.
Could Buybacks Reshape Crypto Valuations?
The growing popularity of token repurchases reflects a broader shift in how investors evaluate crypto projects.
Instead of focusing exclusively on user growth, token launches, or speculative narratives, investors are increasingly examining whether protocols generate sustainable revenue and how that revenue is distributed.
Bitwise Chief Investment Officer Matt Hougan previously suggested that crypto valuations could potentially double over the next two years if more protocols use revenue to fund token buybacks and burns.
That remains an outlook rather than a guaranteed market outcome.
For buybacks to have a lasting impact, protocols need sustainable revenue, transparent mechanisms, and sufficient market liquidity. Falling activity or declining revenue could reduce the amount available for repurchases.
Revenue Becomes a Bigger Part of the Token Investment Story
The $638 million buyback figure marks a significant change from previous years and highlights the growing importance of token economics in the crypto market.
Hyperliquid and Pump.fun currently dominate the trend, but Ethena’s proposal suggests other major protocols may follow.
If more projects begin returning protocol revenue to token holders through buybacks or burns, investors could increasingly judge crypto assets by their cash-generating capacity and value-distribution mechanisms, rather than relying solely on speculation and growth narratives.
The rise of token buybacks signals a broader evolution in crypto: successful protocols may increasingly be expected to turn real economic activity into tangible value for their token ecosystems.
