tl;dr
In 2025, crypto projects spent over $1.4B on token buybacks, with Hyperliquid leading the charge. The trend highlights a shift toward supply reduction and value preservation, driven by institutional adoption and evolving tokenomics strategies.
**Cryptocurrency Token Buybacks Surge in 2025: Hyperliquid Leads $1.4B Spending Spree**
In 2025, cryptocurrency projects have poured over $1.4 billion into token buybacks, marking a significant shift in how blockchain ecosystems manage their token economies. According to a recent report by CoinGecko, 28 projects allocated substantial resources to repurchasing their own tokens, with the top 10 projects accounting for 92% of the total expenditure. At the forefront of this trend is Hyperliquid, a decentralized perpetual exchange protocol, which alone committed $645 million—nearly half of all buyback activity this year.
### Hyperliquid Dominates the Buyback Landscape
Hyperliquid’s $645 million in token buybacks far outpaced its competitors, representing 46% of the total market activity. The protocol utilized its Assistance Fund to repurchase 21.36 million HYPE tokens, equivalent to 2.1% of the total supply. OAK Research estimates that Hyperliquid’s model could theoretically repurchase up to 13% of its supply annually, underscoring its long-term commitment to reducing circulating supply and boosting token value.
Other projects also made notable moves. LayerZero executed a $150 million one-off buyback of ZRO tokens, acquiring 5% of its supply. Pump.fun followed with $138 million in PUMP repurchases, retiring 3% of its tokens. Raydium allocated $100 million to buybacks and burns of RAY tokens, while Sky Protocol, Jupiter, Ethena, Rollbit, Bonk, and Aave rounded out the top 10.
### A Surge in Buyback Activity
The momentum behind token buybacks accelerated sharply in the second half of 2025. CoinGecko reported an 85% month-over-month surge in buyback spending in July, with mid-October figures reaching $88.81 million. This surpasses the first-half monthly average of $99.32 million, indicating a sustained upward trajectory. On average, $145.93 million has been spent each month, signaling growing adoption of the mechanism across the sector.
However, not all projects achieved high dollar amounts. For instance, GMX outperformed in terms of supply reduction, repurchasing 12.9% of its total supply for $20.86 million—a stark contrast to the average of 1.9% for the 23 projects analyzed. Meanwhile, 14 of the 23 projects bought back less than 1% of their supply, highlighting varying strategies and scales.
### What’s Driving the Buyback Boom?
The surge in token buybacks is attributed to a confluence of factors, including project profitability, mature governance, and shifting investor sentiment. DWF Labs noted that as decentralized protocols achieved sustainable revenue streams, they increasingly turned to buybacks to reward long-term holders, reduce supply, and create positive feedback loops.
Mature decentralized autonomous organizations (DAOs) and disciplined treasury management—such as Aave’s structured “Aavenomics” buybacks—helped institutionalize these practices. Additionally, investors gravitated toward scarcity-driven token models after the volatile 2024, while automated on-chain systems from projects like Hyperliquid and Raydium made buybacks transparent and continuous.
### The Future of Tokenomics
Token buybacks have emerged as a defining trend in 2025’s decentralized economy, reflecting a broader shift toward sustainable value creation. As projects refine their tokenomics strategies, the focus on supply reduction and community incentives is likely to intensify. Hyperliquid’s dominance and the broader market’s embrace of buybacks signal a maturing ecosystem, where transparency, efficiency, and long-term value preservation are prioritized.
For investors and developers alike, the rise of token buybacks underscores a pivotal evolution in how blockchain projects balance growth, scarcity, and user trust in an increasingly competitive landscape.