Hyperliquid and Pump.fun have become two of the most talked-about platforms in crypto for 2025. Although they target different market niches, Hyperliquid is a Layer‑1 DEX platform, and Pump.fun operates as Solana’s premiere meme‑coin launchpad. The listed platforms have both converged on the same token buyback strategy.
What Are Token Buybacks?
Token buybacks involve a process similar to stock repurchases in corporate finance; the process involves cash flows getting used to buy tokens on the open market.
The strategy helps to reduce the circulating supply and could ultimately promote trust in the protocol. This may also include token burns in some situations to boost scarcity for the relative token
In crypto, buybacks are not strictly financial moves; they operate as processes that link the success of a protocol to the value of the ultimate token holder.
Hyperliquid’s Buyback Strategy
Revenue & Scale
Hyperliquid has become a revenue machine, generating nearly $105.17 million in fees over just 30 days. An impressive 97% of this revenue is injected directly into HYPE buybacks through the platform’s Assistance Fund. The annualized revenue for the protocol stands at $1.283 billion.
According to sources like OAK Research, HYPE decreased 51% in Q1, driven down by weak market conditions, macro tensions, and a particularly strong Q4.
In Q2, with tariff relief and positive regulatory conditions, the asset went up 206% compared to peers up 25%, helped along by increased buybacks averaging $2 million a day in June 2025.
The average weekly buybacks currently hover around $24 million, so it comes as no surprise that Hyperliquid has the largest buybacks in all of crypto.
In addition to its buybacks, Hyperliquid is aggressively scaling:
- Developing the USDH stablecoin in order to bind the ecosystem together.
- Adding staking tiers and builder codes that reward developers.
- Integrating with Phantom Perps for liquidity expansion.
Risks
- There are major upcoming token unlocks (notably November 29, 2025), releasing 9.9 million tokens (23.8% of total supply).
- There are questions of centralization and exaggerated valuation multiples.
Pump.fun’s Buyback Strategy
Revenue & Market Presence
Pump.fun has dominated the Solana meme‑coin launchpad sector, capturing a 77% market share. Over the past year, it generated $734 million in revenue, primarily from token‑launch fees. The current value for Pump Fun Total Revenue stands at $641.9 million.
Buyback Execution
Between August 28 and September 3, Pump.fun executed $12.19 million in buybacks. The cumulative buybacks now total nearly $83.32 million.
A recent $59 million buyback round boosted PUMP by 17% in a single week—even as broader markets declined.
Ecosystem Initiatives
Pump.fun is coupling its buybacks with Project Ascend, a new dynamic fee model that will lower costs for small launches and ultimately reward longer-term creators, which could be a signal that they will continue major improvements around their meme coin ecosystem.
Risks
PUMP is still at 50% below its July peak, suggesting volatility is still intact.
A significant reliance on meme‑coin hype cycles means long‑term stability is not guaranteed.
Analysis and Interpretation
- Hyperliquid: With its protocol revenue base, the buybacks are looking more sustainable. The continued infrastructure growth is a key addition for sustained growth of the protocol.
- Pump.fun: Aggressive buybacks may provide quick peaks; however, its reliance on some speculative meme-coin launches increases long-term risk.
Conclusion
Both models share different approaches:
- Hyperliquid’s model: sustainable, infrastructure‑backed, and long‑term focused.
- Pump.fun’s model: speculative, hype‑fueled, high‑risk/high‑reward.
Only time will tell which one will succeed or if both will be a success!
