Decentralized finance (DeFi) protocols allocated nearly $800 million to token buybacks and revenue-sharing activities in July 2025, marking a significant increase of over 400% since early 2024, according to a report by crypto market maker Keyrock. The report suggests that while buybacks aim to align token value with protocol success, their effectiveness is debatable. Amir Hajian, the report's author, pointed out that many programs tend to overspend during market highs and underspend during downturns, potentially diverting resources from growth initiatives.
Despite these concerns, projects like Hyperliquid and Aave have implemented buyback strategies, with some investors attributing strong token performance to these programs. However, other crypto research firms, including Messari, have also expressed skepticism about the value of buybacks, highlighting the ongoing debate within the industry regarding their impact on long-term growth and sustainability.
DeFi Protocols Allocate $800M to Token Buybacks in July, Effectiveness Questioned
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