Crypto token buybacks hit record $638 million

Crypto token buybacks reached a record $638 million through late August 2026, according to data from Allium Labs. This figure represents an increase from the $545 million recorded during the same period in 2025.

The surge in activity follows guidance from the U.S. Securities and Exchange Commission (SEC) that addressed legal uncertainties surrounding the practice. SEC staff indicated that buyback announcements for non-security crypto assets on functional networks may fall outside the scope of the Howey test, which defines investment contracts. However, the agency cautioned that pitching buybacks as a source of yield for newer, non-functional networks could still lead to a classification as an investment contract.

Market activity is highly concentrated, with two protocols accounting for nearly 90% of the total volume. Hyperliquid contributed approximately $370 million, while Pump.fun contributed about $200 million. Hyperliquid utilizes buybacks to channel exchange fees into price support, while Pump.fun leverages its significant revenue from memecoin creation to reinvest in its token.