Crypto buybacks signal fundamental strength for these DeFi tokens

Crypto buyback-and-burn schemes are a growing trend among DeFi projects that actually generate revenues and want to support their community of token holders.

Just recently, Uniswap (UNI) and dYdX  (DYDX), two large decentralized exchanges (DEX), announced proposals to fund token buy-backs and burns. 

These programs directly shrink circulating supply, creating deflationary pressure and signaling project confidence. They are important for active traders as a consistent buyback program can hint at upward price momentum.

Uniswap (UNI) proposed to buy back ~8.2 million of UNI tokens from the open market over the next 6 months, creating a buy-side pressure of ~$46 million using its proceeds from protocol revenues, representing ~3.7% of its annualized revenues.

In addition, the DAO plans to burn 100 million of its UNI tokens, effectively shrinking its fully diluted maximum supply by 10%. As a result of this announcement, UNI’s price jumped by over 50%.

It’s pulling back to that breakout level, near $5.60 support, which could be another attractive swing trade entry opportunity.

UNISWAP (UNI) – Technical analysis chart

Likewise, dYdX community has recently approved an increase to its token buyback program from 25% to 75% of its protocol revenues generated by trading fees. This increase will allocate ~$11 million of annualized revenues for DYDX token buybacks, creating a robust buy-side pressure on DYDX’s price going forward.

On the heels of Uniswap and dYdX proposals to use their revenues for buybacks, I would like to highlight two other projects with the biggest ongoing buybacks that are worth exploring.

Decentralized perps exchange Hyperliquid leads the 2025’s buybacks. So far, it has spent over $640 million from its on-chain Assistance Fund to repurchase HYPE.

These ongoing buys have removed around 21.36 million HYPE (approximately 2.1% of supply) from circulation. The program averages ~$60 million in monthly buybacks, underscoring an aggressive deflationary stance funded by trading revenue.

However, these buybacks will have a significant offset soon from an upcoming token unlock for Hyperliquid’s core contributors starting on November 29^th, 2025.

There will be 10 million of HYPE tokens unlocked every month, representing ~$380 million in value at its current market price (HYPE: $37). This implies that unless the buyback rate increases, there will is significant net supply inflation starting late November.

Projects with the largest protocol revenues

Further, Solana-based Pump.fun (PUMP) is using 100% of its protocol revenues to buyback and burn its native PUMP tokens.

Pump.fun is the most popular launchpad for MEME coins on Solana network with 75% market share.

It has recently completed ~$130 million buyback initiative, reducing ~8% of its total supply.

When crypto markets go through corrections, projects with real products, customers and revenues are more likely to emerge as winners. Such tokens should outperform the market during the correction (decline less than average) but also during the bull market phase.