Solana protocols power 40% of weekly crypto token buybacks, benefiting holders and changing blockchain tokenomics.
A new paradigm is emerging in the distribution of digital currency value: crypto buybacks. A new era of returned value to holders and stabilizing tokenomics is about to begin. Protocols based on Solana have achieved an astounding 40% of all weekly tokens purchased back of all projects in the whole crypto sector.
Why is Crypto Token’s Buyback Soaring?
Source – Dune Analytics
The number of tokens being repurchased has soared, with the amount spent on buybacks jumping to almost 47M in the middle of August compared to 14.5M in June an outrageous 223 percent rise over two months.
Solana protocols were at the forefront of this push with an unprecedented 301 percent increase, increasing their purchase volumes fourfold. This growth was ahead of the other ecosystems, such as Ethereum, whose share declined to 2.5%.
Hyperliquid continues to be the largest buyer by volume and an increasing appetite among Solana purchasers is an indication of a changing power dynamic in buyback economics.
Solana’s Rising Stars: Diverse Protocols Power Buybacks
This trend is powered by different Solana projects The major exchange Jupiter has been spending $1M-$2.3M M a week on their token repurchases. Raydium performs steady buybacks of 500K-1.5M every week.
New players like Pump.fun and Letsbonk have already established themselves as key players in the industry.Pump.fun buybacks went up 100x to 13M in just a few weeks, by far the largest portion of protocol buybacks as of late.
In addition, there is Step Finance, which has pledged to invest all of its profits in buybacks, thereby enhancing its position across the ecosystem comprehensively.
Such buybacks not only decrease circulation but also align the incentives of the teams and communities.
They resemble the conventional share buybacks in finance, which are also supposed to fix the price and reward shareholders directly.
Profitability Check: Who is Winning Big on Buybacks?
Not every buyback offers the same returns. The buybacks offered by Raydium are remarkable, with a 19 percent profit increase, and Pump.fun has almost 12 percent.
Aave ranks at 6.75%. On the other hand, the huge buyback volume of Hyperliquid depicts low returns of 0.65%.
Others such as BONK have witnessed drops of more than 26%, which shows a danger in the timing and market conditions. The findings indicate that buybacks are not a silver bullet but rather a part of growing, strategic tokenomics.
Source – Dune Analytics
The total buyback expenditure has reached above $340M in 90 days with its protocols contributing nearly 40 percent of the weekly volume.
This is an indication that token buybacks are no longer experiments- they are now part of the crypto economic strategy.
