Major Buyback Activity Dominates Crypto Markets
Crypto projects have been actively buying back their own tokens throughout 2025, with total spending reaching $1.4 billion according to recent data. The numbers cover activity from January through mid-October, showing significant market participation from various blockchain projects.
Hyperliquid stands out as the most aggressive buyer, accounting for nearly half of all buyback volume. The decentralized exchange spent approximately $644 million repurchasing its HYPE tokens. That’s quite a substantial amount when you think about it—almost 50% of the entire buyback market coming from just one project.
Other Notable Participants in Buyback Programs
LayerZero followed with over $150 million in buybacks after conducting one of the most anticipated airdrops in recent memory. Pump.fun, the popular meme coin platform on Solana, spent $138 million to repurchase 3% of its total PUMP token supply. Meanwhile, GMX, another decentralized exchange, managed to buy back 13% of its circulating supply despite ranking only 11th in total volume spent.
Solana’s leading DEXes also participated actively. Raydium and Jupiter together spent more than $160 million on buyback programs. It seems like there’s a pattern emerging here—decentralized exchanges are particularly keen on these buyback initiatives.
Why Projects Pursue Buyback Strategies
These buyback programs serve multiple purposes for crypto projects. They help reduce potential selling pressure in the market by absorbing tokens that might otherwise be sold. When teams demonstrate confidence by purchasing their own tokens, it often signals to the market that they believe in the long-term value of their project.
The strategy also makes tokens scarcer by reducing circulating supply. Basic economics suggests that when supply decreases while demand remains constant or increases, prices tend to rise. This effect was recently demonstrated when Ethena’s founder purchased $25 million worth of ENA tokens, leading to significant price appreciation.
Community Benefits and Market Impact
Some projects, like GMX, have taken the additional step of redistributed purchased tokens back to their communities. This approach not only supports token prices but also rewards loyal supporters and stakeholders.
The sheer scale of these buybacks—$1.4 billion across 28 different projects—indicates that this strategy has become a mainstream practice in the crypto space. While the immediate price impact varies, the long-term effects on token economics and community confidence appear to be significant drivers behind these decisions.
I think we’ll likely see more projects adopting similar strategies as they mature and accumulate treasury funds. The practice seems to be gaining traction as a way to manage token economics while demonstrating commitment to long-term project success.
