Since the beginning of 2026, cryptocurrency projects have set a new record by allocating $638 million to buy back their own tokens. This is an unprecedented figure, nearly double the volume of 2024 ($366 million) and significantly ahead of last year's pace ($545 million for the same period). However, the key feature of this trend is its massive concentration: almost the entire volume was driven by just two platforms.
Hyperliquid: Automatic Burn Mechanism
Hyperliquid took the lead, accounting for about $370 million, or 58% of the total volume. The protocol's built-in Assistance Fund automatically directs trading fees to purchase HYPE, after which the tokens are burned. This means not just a reduction in circulating supply, but an irreversible decrease in the total coin supply, creating a long-term deflationary effect.
Pump.fun: Strategy Evolution
Pump.fun contributed another approximately $200 million, or 31% of the aggregate figure. Until the end of April, the platform had been directing all of its revenue to buybacks for nine months. However, on April 28, the team changed its approach: now 50% of income is programmatically reserved for buybacks and burns over the course of a year, while the rest goes toward business development. Notably, as part of the transition to the new model, Pump.fun burned all previously purchased PUMP tokens at once, worth about $370 million — roughly 36% of the circulating supply at the time.
It is important to understand that these figures are not directly comparable: the April burn included tokens bought back over nine months, partially falling within 2025. Additionally, the aggregated market data does not disclose whether only open-market purchases were counted or also operations with treasury reserves.
Elton Shehdula, head of research at Allium Labs, rightly notes: a buyback can reduce supply and create additional demand, but by itself it does not guarantee price growth. The examples of Chainlink and Jupiter, whose tokens depreciated despite buyback programs, confirm this thesis.
My view: The record buyback is a marker of market maturity, where projects are beginning to compete for capital through tokenomics rather than just hype. However, investors should remember: burning is a tool, not a strategy. Sustainable growth is only possible when buybacks are combined with real value generation and a growing user base.