A $40 million buyback frenzy is coming! The supply and demand pattern of the crypto market may be rewritten.

Token buybacks are rapidly becoming a core strategy for fund management in encryption protocols. The latest on-chain data shows that top protocols are nearing a total weekly buyback amount of $40 million, with Hyperliquid and Pump.fun leading the pack. This trend not only reflects the protocols' confidence in their long-term value but is also changing the market supply and demand structure, becoming an important force supporting token prices.

Buyback scale hits a new high, Hyperliquid and PumpFun lead

According to the latest tracking data, the total amount of Token buybacks in the crypto market last week was close to 40 million dollars.

Hyperliquid: With a buyback amount of $24 million, it ranks first, demonstrating its strong revenue capacity and capital repatriation strategy.

PumpFun: Following closely with $10 million, it has become another major driver of this round of buybacks.

This kind of centralized buyback behavior is similar to the logic of "stock repurchase" in traditional stock markets: using revenue or funds to repurchase its own Tokens, reducing circulating supply, and providing support during price fluctuations.

Market Impact and Price Support of Repurchase

In traditional financial markets, share buybacks are often seen as a statement of management's confidence in the company's future growth. In the encryption field, token buybacks similarly release a similar signal:

Scarcity enhancement: Reducing the circulating supply in the market, if demand remains stable, prices may receive support.

Short-term boost: Some protocols saw token prices rise during the buyback period, attracting investor attention.

However, on-chain data and historical cases show that the buyback effect cannot always be maintained in the long term. Once the buyback plan is reduced or terminated, some tokens may face sell-off pressure and even drop below pre-buyback levels.

Sustainability depends on the protocol revenue model

The long-term viability of buybacks is highly correlated with the revenue-generating capability of the protocol:

High-income protocol: A protocol with stable transaction fees and trading volume, capable of ongoing buybacks, such as the leading Hyperliquid in this round.

Projects that rely on capital consumption: If the source of the repurchase funds is not operating cash flow, but rather relies on financing or reserve funds, then during market downturns or when user demand decreases, the repurchase plan may be difficult to sustain.

This means that investors should pay attention to the protocol's revenue structure and user growth when assessing buyback news, rather than just looking at the buyback amount.

Investment Insights and Risk Alerts of the Buyback Wave

For investors, the buyback craze is both an opportunity and a risk:

Opportunity: In the short term, buybacks can reduce selling pressure and enhance market sentiment, providing support for prices.

Risk: Over-reliance on repurchase protocols may lead to a rapid price decline if income decreases or the market environment worsens.

As buybacks become a new trend in the crypto market, investors should formulate flexible trading strategies by combining on-chain data, protocol financial conditions, and market sentiment.

Conclusion

Weekly token buybacks of up to $40 million are pushing the crypto market into a new era of capital management. Whether it's Hyperliquid or PumpFun, the actions of these protocols are reshaping the market supply and demand landscape. However, buybacks are not a cure-all; the true long-term value still depends on the revenue-generating ability and user stickiness of the protocols. For more real-time market quotes and on-chain data analysis, please follow the official Gate platform.