# Raydium Designates $190 Million for RAY Token Buyback, Representing 25% of Circulating Supply

Raydium (RAY), the leading decentralized exchange (DEX) on the Solana (SOL) blockchain, has executed a $190 million buyback program of its native RAY tokens, according to recent disclosures. Launched in early 2024, this strategic initiative aims to decrease the circulating supply of RAY tokens while redistributing generated profits to token holders, presenting a dual benefit.

Per Crypto Times, the buyback has enabled Raydium to retrieve 69.1 million RAY tokens, equating to roughly 25% of the circulating supply. Project contributor 0xINFRA clarified the effort on the social media platform X (previously Twitter):

"We have allocated a total of $190.4m to buyback $RAY.
This brings our total amount of accumulated $RAY to 69.1m or 25% of the circulating supply."
— Infra | Raydium (@0xINFRA) July 16, 2025

# Market Valuation and Implications on Market Capitalization

As of the evaluation date, the RAY token's trading price was approximately $2.95, translating to a nominal market capitalization of $800 million. However, excluding tokens bought back and removed from circulation, the effective circulating market cap adjusts down to $593 million—indicating the impact buybacks have on perceived market value.

Raydium channels its token repurchase funding from transaction fee revenues. For instance, in May 2025, the protocol reported generating $9.1 million in revenue, dedicating $4.8 million to token buybacks. This monthly contribution suggests an extrapolated annual buyback budget of $57 million, substantially outpacing the yearly issuance cap of 1.9 million RAY tokens.

# Criticisms and Strategic Balancing

The initiative has sparked criticism from skeptics who argue token buybacks often function as a short-term marketing maneuver, lacking the potential for sustainable value creation. Acknowledging these concerns, Raydium fosters financial resilience via its diversified treasury, valued at $60 million and backed by assets such as Solana (SOL) and USD Coin (USDC). This treasury provides both liquidity and long-term stability, mitigating perceived risks of over-relying on buybacks alone.

Raydium’s strategy reflects broader industry trends, as more projects integrate similar buyback frameworks. For instance, Solana-based meme coin launchpad PumpFund recently announced its own token buyback program. Similarly, perpetual futures platform Hyperliquid allocates an impressive 97% of its fee revenues to HYPE token repurchases. These initiatives signal buybacks’ growing prominence as a tool to counter inflationary pressures and reward ecosystem participants.

# Sustaining Value in a Competitive Crypto Ecosystem

Within a rapidly evolving crypto environment characterized by increasing token issuances, Raydium’s steadfast commitment to recurrent buybacks underscores its intent to stabilize RAY’s market value while delivering sustained benefits to its community. By integrating strong treasury management practices with consistent buyback schedules, Raydium sets itself apart as a leader in the decentralized finance (DeFi) ecosystem. Its proactive measures not only protect RAY token value but also exemplify a model for long-term success in a dynamic, competitive landscape.

Through this synergistic approach, Raydium balances short-term token value enhancement and long-term ecosystem growth, ensuring its relevance as a pioneering force within blockchain-based finance.