Crypto companies spend record $640 million buying back own tokens

The digital asset industry is adopting a familiar strategy from traditional capital markets: Crypto companies and groups have spent nearly $640 million since the beginning of the year buying back their own tokens. The move comes as part of an attempt to revive prices and demonstrate stability and confidence during a prolonged market slowdown.

The updated scope of buybacks, which stands at $638 million, marks a surge compared to the $545 million spent in the corresponding period last year, and a dramatic leap from just $366,000 spent in all of 2024, according to data from blockchain research group Allium Labs. Leading this trend are the derivatives exchange Hyperliquid and the meme coin creation platform pump.fun, whose combined spending accounts for nearly 90 percent of total buybacks in the market.

The waves of buybacks are occurring against the backdrop of a particularly challenging period for the crypto market, as some investors choose to abandon digital assets in favor of artificial intelligence stocks that are recording sharp gains.

Although prices experienced a slight recovery following a surprising intervention by the US Department of the Treasury in bond markets that undermined confidence in the dollar, Bitcoin remains about 38 percent below its peak level, while other popular tokens, such as XRP and Solana, show a plunge of about 60 percent.