Crypto Firms Spend $638 Million on Token Buybacks to Shore Up Prices

Token buybacks mirror corporate share-repurchase programs: issuers purchase their own assets and reduce circulating supply in an effort to signal confidence and support prices. The strategy has gained traction as investors rotate toward artificial-intelligence stocks and cryptocurrency markets remain under pressure. Yet tokens do not necessarily confer the cash-flow claims or shareholder rights attached to equities, leaving their performance dependent on utility, demand and broader market conditions.

Digital-asset companies spent $638 million on token buybacks in 2026 through Aug. 31, according to Allium Labs data cited by the Financial Times, up from $545 million in the same period a year earlier. Hyperliquid and pump.fun accounted for 90% of the total. Hyperliquid has separately directed 99% of trading-fee revenue toward repurchasing HYPE, buying and burning $1.3 billion since December 2024; the token gained 70% over the past year. Still, Allium Labs research head Elton Shehdula and Keyrock researcher Amir Hajian cautioned that repurchases alone may not generate lasting price gains.