Kunal Doshi

Shaunda Devens

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With risk assets back in rally mode, crypto is leaning hard into the easing narrative. Softer inflation data has lifted expectations for Fed cuts, sending majors higher and reigniting speculative flows. In this environment, protocols are reaching for every tool available to capture attention and support valuations, from pump.fun buying ecosystem memes to Lido potentially experimenting with buybacks as a way to bolster token performance.



<h1 class="wp-block-heading">Market Update</h1>



It’s a field of green today with BTC, ETH and SOL up 2.3%, 1.7% and 2.7%, respectively in the last 24 hours. This follows the PPI surprising to the downside, falling 0.1% MoM vs a forecast +0.3%. Traders took it as proof that Trump’s tariffs aren’t fanning inflation.



All eyes now turn to tonight’s CPI print to confirm the trend and pave the path for rate cuts ahead. <a href="https://kalshi.com/markets/kxfeddecision/fed-meeting/kxfeddecision-25sep">Current odds</a> show an 82% chance of a 25bp cut next week, with even a 17% chance of 50bp cut. Expectations for three cuts this year have <a href="https://kalshi.com/markets/kxratecutcount/number-of-rate-cuts/kxratecutcount-25dec31">doubled</a> since last week. The anticipation of an easing cycle has turned sentiment bullish, with Pump the standout performer, up 46% in the last seven seven days.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="448" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024&amp;h=1024" alt="" class="wp-image-107587" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The easing cycle that began last September sparked Solana’s meme season, peaking in December 2024 when the Fed signaled slower cuts ahead. Potential airdrops from Meteora, Seeker, and maybe even Pump in Q4 could fuel the next wave. Historically, infrastructure plays like Raydium and Solana benefited most from meme trading, but flows now tilt towards Pump as a more direct play. In August, pump.fun drove 31% of Solana app revenue and currently dominates <a href="https://dune.com/queries/5440992/8878702">92%</a> of launchpad volumes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1024&amp;h=1024" alt="" class="wp-image-107588" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-79.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Initially criticized as extractive, pump.fun has since emphasized community alignment. Its <a href="https://dune.com/adam_tehc/pumpfun-glass-full-foundation">Glass Full Foundation</a> injects liquidity into ecosystem tokens, while <a href="https://dune.com/adam_tehc/pumpfun-creator-earnings">Project Ascend</a> boosted creator earnings by 12x. Fading a project with PMF is a losing trade, and Pump keeps printing.



— <a href="https://x.com/Kunallegendd">Kunal</a>&nbsp;



<h1 class="wp-block-heading">Lido: Buybacks without profits</h1>



Lido contributors and <a href="https://www.steakhouse.financial/">Steakhouse</a> have proposed <a href="https://research.lido.fi/t/nest-network-economic-support-tokenomics/10648">NEST</a> (Network Economic Support Tokenomics), a buyback sink that uses stETH set aside by the DAO to buy LDO. The mechanism operates as follows:



<ol class="wp-block-list">
<li>Funding: The DAO fills NEST with a chosen amount of stETH via <a href="https://vote.lido.fi/">Aragon</a> votes.</li>



<li>Execution cadence: For any stETH held in NEST, at least one CowSwap order must be created every ~7,000 blocks (approximately once per day), with a maximum order size calibrated to stay under 1% slippage.</li>



<li>Keeper incentive: Whoever triggers an eligible order receives two basis points of the order size in stETH as a reward.</li>
</ol>



Two factors make this proposal particularly interesting. First, Lido DAO will be responsible for filling and topping up the NEST contract with stETH, meaning the buybacks are uncorrelated from the protocol&#8217;s direct earnings, a contrast to the majority of programs that fund themselves with revenue. With Lido&#8217;s treasury holding 26,816 stETH ($115 million), although there&#8217;s no indication of how much will be deployed, it&#8217;s likely that holders will appreciate any form of financial engineering that could support price appreciation.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1024&amp;h=1024" alt="" class="wp-image-107590" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-81.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



However, the irony is that Lido DAO has yet to turn a profit. The protocol has accumulated $345.4 million in cumulative losses since 2021, despite processing over $2.68 billion in gross staking rewards. While 2025 shows improvement with losses narrowing to just $200K (approaching breakeven), the fundamental economics remain challenging.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1024&amp;h=1024" alt="" class="wp-image-107589" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-80.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Interestingly, the topic has been discussed extensively before, particularly in 2024 after Uniswap&#8217;s fee switch proposal ignited a buyback meta among DeFi 1.0 projects. Hasu pushed back, arguing that revenues are insufficient to cover the runway and that the protocol should wait for profitability before implementing buybacks.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="448" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024&amp;h=1024" alt="" class="wp-image-107586" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-78.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



But with LDO trading 78% below its all-time high at $1.26, perhaps the DAO has grown tired of waiting. Watching the whole market pump, the prospect of deploying treasury assets to support token price may be more attractive than enduring another year of underperformance. 



— <a href="https://x.com/shaundadevens">Shaunda</a>



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Lido

Respect the PUMP: Crypto’s emerging meme season

Carlos

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Crypto markets have had a positive start to the week, with clear outperformers but for very different reasons. The chart below shows the week-over-week performance of various assets as of Sept. 8. We observe that WLD (+84%), PUMP (+39%), ENA (+25%), HYPE (+18%), and SOL (+9%) have shown remarkable relative strength against BTC (+3%) and ETH (flat).



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1024&amp;h=1024" alt="" class="wp-image-107449" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-64.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Let&#8217;s start discussing HYPE and PUMP, whose outperformance has been primarily fundamentals- or value-driven. Regarding Hyperliquid, major stablecoin issuers including Paxos, Frax, Sky and Agora are outbidding each other ahead of a Sept. 14 validator governance vote that will determine who gets to have Hyperliquid&#8217;s native &#8220;USDH&#8221; ticker, with proposals offering aggressive revenue-sharing agreements (up to 100%).



The USDH debate has centered around institution- vs. native-team issuance and ecosystem alignment. For instance, Native Markets, led by Max Fiege,<a href="https://nativemarkets.substack.com/p/expanded-proposal-native-markets"> proposed</a> that 50% of the reserve yield be immutably contributed to the Assistance Fund, while the other 50% be dedicated to USDH growth through partnerships with builder-code interfaces, HIP-3 markets and HyperEVM apps. Paxos, on the other hand,<a href="https://x.com/Paxos/status/1964422295176564937"> proposed</a> allocating 95% of interest from reserves backing USDH to buy back HYPE and redistributing it to applications and validators proportional to their USDH balances across their platforms.



While Native Markets would be GENIUS-compliant via Bridge, Paxos has highlighted its already proven global regulatory coverage and reach (not only GENIUS, but also MiCA and MAS-compliant), with existing payment corridor integrations across the Middle East, Latam, Africa and Asia. While it&#8217;s still unclear who will come out on top, it&#8217;s evident that Hyperliquid wins regardless. Migrating $5 billion in USDC deposits to USDH could represent an additional $200 million in revenue for Hyperliquid annually, representing ~20% of its ~$1 billion revenue run rate. At the same time, the battle to win the USDH ticker showcases the conviction and value these issuers see in Hyperliquid&#8217;s exchange and the HyperEVM ecosystem, with HYPE hitting an all-time high of $52.67 today.



While Hyperliquid has been the center of attention, PUMP has actually been the best-performing asset of the two in the past week, up 39% (vs. 18% for HYPE). Pump has decisively reclaimed its launchpad market share, now above 85%, running at an annualized revenue rate of $540 million and using 100% of its revenues to buy back the token. Moreover, it remains surprisingly attractively priced, with a circulating P/S of three and FDV/Sales of&nbsp; nine.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1024&amp;h=1024" alt="" class="wp-image-107450" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/09/image-65.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The other side of HYPE and PUMP&#8217;s fundamentals-driven price increases are SOL, ENA, and WLD’s DATCO-driven flows. Yesterday, Forward Industries (NASDAQ: FORD), Galaxy-Multicoin’s SOL DATCO, announced<a href="https://www.businesswire.com/news/home/20250907677362/en/Forward-Industries-Inc.-Announces-%241.65-Billion-Private-Placement-in-Cash-and-Stablecoin-Commitments-Led-by-Galaxy-Digital-Jump-Crypto-and-Multicoin-Capital-to-Initiate-Solana-Treasury-Strategy"> $1.65 billion</a> in cash and stablecoin commitments, confirming <a href="https://blockworks.co/news/samani-expected-chairman-solana-treasury">Kyle Samani as chairman</a>. With this announcement, the big question regarding whether DATCO purchases would translate to buying SOL with cash on the secondary market vs. simply purchasing locked SOL at a discount has been answered. Combined with Solana ETFs under the &#8217;33 Act likely being approved in October, SOL is poised for outperformance into year-end as the third crypto asset with a structural funnel to TradFi flows after BTC and ETH.



On its part, StablecoinX<a href="https://x.com/ethena_labs/status/1964063567772340432"> announced</a> on Friday an additional $530 million capital raise to buy ENA on the open market. The planned deployment schedule for ENA purchases will be dynamic based on price: $5 million per day if ENA is above $0.70, and $10 million per day if ENA is below $0.70 or if it&#8217;s down more than 5% in a 24-hour period. Importantly, the Ethena Foundation has the right to veto any sales of ENA by StablecoinX at its sole discretion.



Finally, Eightco Holdings (NASDAQ: OCTO) <a href="https://www.prnewswire.com/news-releases/eightco-holdings-inc-octo-announces-250-million-private-placement-with-an-additional-20-million-strategic-investment-from-bitmine-bmnr-to-initiate-worlds-first-worldcoin-wld-treasury-strategy-302549012.html">announced</a> on Monday a $250 million raise to implement the first Worldcoin-focused DATCO strategy, with Dan Ives appointed as chairman. Notably, Tom Lee’s Bitmine (BMNR) had purchased 13.7 million shares of OCTO at $1.46, which rose ~3,000% to $45 on Monday, meaning that the $20 million investment is now worth more than $600 million. On its part, WLD rose as much as 85% on Monday, hitting a high of $1.92.



The contrast between value- vs. momentum-driven price action is interesting to think about, especially in the context of investment horizons and sustainability of flows. The buying pressure from DATCOs has been telegraphed to the market, leading to frontrunning by traders and investors. The main uncertainty for these vehicles is whether they will trade at a premium to NAV, in which case they will be able to sell equity to buy more of the underlying token, à la BMNR. On the other hand, Hyperliquid and Pump&#8217;s flows are more reliant on these apps expanding their leading position in each of their respective verticals and increasing their revenue (and thus buybacks) growth rate. That is, of course, not to say assets like SOL and ENA are devoid of fundamentals, since they have clearly found product-market fit and are quality tokens. Still, the majority of their inflows in the past few weeks have come from DATCOs&#8217; expectations as opposed to fundamental catalysts.



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