Crypto protocols spent $1.4 billion on token buybacks in 2025, a wave of activity that has drawn attention but still left questions over whether such programs reliably boost token prices. According to industry data, only 3 of 10 major buyback tokens beat Bitcoin over the period, suggesting that supply reduction alone is not a guaranteed catalyst.
Hyperliquid accounted for roughly 46% of the total buyback spend, using about 97% of its trading fees to repurchase HYPE. Other leading projects have rolled out similar mechanics: Pump.fun burned 36% of its supply and locked 50% of revenue into burns, Uniswap burned 107 million UNI and activated its fee switch, Aave introduced automated buybacks, and Aptos has emphasized a hard-capped supply with sharply higher fees. Solana governance has also proposed an update that would fundamentally alter SOL's economic model.
Bitwise CIO Matt Hougan has pointed to these moves as signs that the market may still be undervaluing how protocols can capture revenue and link usage to token value. Yet the market remains under bearish pressure, and the data shows buyback size, revenue and supply dynamics matter more than headlines. The result is a nuanced picture: token burns and buybacks are becoming a central part of protocol design, but investors are still debating whether they translate into durable outperformance.
