- Covalent initiates 900,000 $CXT buyback, affecting token supply.
- Buyback strategy supports deflationary tokenomics effectively.
- Institutional interest rises as Covalent expands chain integration.
In August 2025, Covalent conducted an on-chain buyback of 900,000 $CXT, reducing the token supply by 0.77% to reinforce its deflationary model and position in the DePIN market.
The buyback ties Covalent’s token scarcity directly to revenue, aiming to attract institutional interest and enhance its multi-chain data services amid ecosystem expansions and regulatory compliance enhancements.
Covalent conducted an on-chain buyback of 900,000 $CXT in August 2025. This operation was part of a strategic effort to reduce the token’s circulating supply by about 0.77% over the past year. Covalent’s team stated, “In August alone, Covalent bought back around 900,000 $CXT off the open market through daily buybacks. In totality, over 7.7M $CXT (0.77% of the supply) has been bought back onchain over the past year.” – Covalent Blog.
The company has linked its buybacks directly to API call revenue, with 95% of these earnings funding the initiative. No statements from Covalent’s CEO Ganesh Swami emerged publicly.
Institutional players have shown increased interest in Covalent, drawn by its disciplined tokenomics which have outpaced some traditional cryptocurrencies. Covalent’s integration with over 150 chains bolsters its market position.
The market impact includes changes in the token’s circulation and potential volatility in token prices. These actions align with broader trends in cryptocurrency deflation strategies.
Staking behavior remains significant, with 32% of the total CXT tokens currently locked. This limits circulating supply and generates higher community engagement, positioning Covalent strongly within the Decentralized Physical Infrastructure Network (DePIN).
The project’s MiCA compliance supports future exchange listings and broader adoption in the financial sector. This move may set precedents for other cryptocurrency projects seeking similar regulatory stability and market presence.
