Covalent, a multi-chain data company, successfully executed a buyback of 900,000 tokens $CXT as part of its supply management strategy.
Buyback Strategy
In August 2025, Covalent carried out a buyback of 900,000 $CXT, reducing the token supply by 0.77%. '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 on-chain over the past year.' This action aims to increase token scarcity and attract institutional investors.
Institutional Interest
Institutional investors are showing increasing interest in Covalent, driven by its disciplined tokenomics that have outperformed several traditional cryptocurrencies. Covalent's integration with over 150 chains strengthens its market position.
Market Impact and Future
The market impact includes changes in token circulation and potential price volatility. Notably, 32% of total CXT tokens are currently locked, limiting circulating supply and enhancing community engagement. Compliance with MiCA standards paves the way for future exchange listings and broader adoption in the financial sector.
Covalent's token buyback strategy supports its position in the rapidly evolving cryptocurrency landscape, showcasing a blend of deflationary management and institutional interest.
