Crypto groups spend record $640mn buying back their own tokens
Digital asset groups have spent almost $640mn so far this year buying back their own tokens, as they turn to a strategy commonly used in equity markets to try to revive crypto prices during a prolonged market downturn.
The $638mn of repurchases compares with $545mn spent over the same period last year and just $366,000 for 2024 as a whole, according to figures from blockchain data group Allium Labs.
Perpetuals exchange Hyperliquid and memecoin-creating platform pump.fun are among the groups spending vast sums on purchasing their own tokens, together accounting for nearly 90 per cent of the buybacks.
The buybacks come during a tough period for the crypto market, as some investors ditch digital assets in favour of soaring AI-related stocks. Although prices bounced recently after the US Treasury’s surprise intervention in bond markets rattled faith in the dollar, bitcoin is still down around 38 per cent since its peak, while other popular tokens such as XRP and solana are down around 60 per cent.
There is an “optic incentive” for crypto groups to do buybacks to show confidence in their tokens, said Elton Shehdula, head of research at Allium Labs.
$MAGMA $CYS $0G
Digital asset groups have spent almost $640mn so far this year buying back their own tokens, as they turn to a strategy commonly used in equity markets to try to revive crypto prices during a prolonged market downturn.
The $638mn of repurchases compares with $545mn spent over the same period last year and just $366,000 for 2024 as a whole, according to figures from blockchain data group Allium Labs.
Perpetuals exchange Hyperliquid and memecoin-creating platform pump.fun are among the groups spending vast sums on purchasing their own tokens, together accounting for nearly 90 per cent of the buybacks.
The buybacks come during a tough period for the crypto market, as some investors ditch digital assets in favour of soaring AI-related stocks. Although prices bounced recently after the US Treasury’s surprise intervention in bond markets rattled faith in the dollar, bitcoin is still down around 38 per cent since its peak, while other popular tokens such as XRP and solana are down around 60 per cent.
There is an “optic incentive” for crypto groups to do buybacks to show confidence in their tokens, said Elton Shehdula, head of research at Allium Labs.
$MAGMA $CYS $0G
