In August 2025, Covalent, a blockchain data provider, continued its token buyback and burn program, signaling its commitment to a deflationary token model. The company repurchased 900,000 CXT tokens during the month, bringing the total number of repurchased tokens to 7.7 million over the past 12 months—equivalent to 0.77% of the total supply. According to Covalent's developers, the tokens were bought on-chain and will be permanently removed from circulation through planned burns, ensuring they will not re-enter the market. The initiative supports a deflationary structure, which may influence future token valuation and market dynamics.

Covalent also highlighted its broader ecosystem developments, including support for over 150 blockchain integrations. This broad network of partnerships is a key component of the company’s strategy to generate sustainable revenue. Additionally, the project announced its compliance with the Markets in Crypto-Assets (MiCA) regulation, with its token now listed on Revolut, a major fintech platform. The listing marks a significant step in Covalent's regulatory alignment and market accessibility. The company also emphasized its ongoing development of the GoldRush API, with recent upgrades including support for HyperEVM, a compatibility layer for Ethereum-based tools.

The company’s developers confirmed that daily token buybacks will continue, and that the “revenue cycle is accelerating” due to ecosystem improvements. Covalent’s buyback strategy, combined with its growing integrations and regulatory compliance, positions the project to gain traction in a competitive market. However, despite these positive developments, the CXT token remains underperforming. It is currently trading 82% below its all-time high, which was recorded nine months ago. With a total market capitalization of $28 million, CXT is not listed on Binance, one of the largest crypto exchanges, which may limit its liquidity and exposure to a broader investor base.

Covalent’s buy-and-burn model aligns with a broader trend in the crypto space where projects seek to create scarcity and increase token value through deflationary mechanisms. The company’s recent actions indicate a strategic approach to managing supply and demand dynamics. By permanently removing tokens from circulation and reinforcing their ecosystem, Covalent aims to build long-term value for its stakeholders.

Despite the positive developments in August, the company faces challenges in terms of market visibility and exchange listings. Analysts and investors will be watching closely to see how these factors evolve in the coming months. For now, Covalent’s efforts to strengthen its infrastructure and regulatory profile suggest a clear roadmap for future growth.