A certain Layer2 ecosystem boasts several leading applications— a top DEX, a crypto wallet, and a stablecoin project. The ecosystem's prosperity seems invincible, and its strength is indeed evident. But digging into the financial data reveals some interesting points. Last year, the protocol's total revenue was only 5,868 ETH. At the current market rate of $3,000 per ETH, that's just about $16 million. Honestly, it's a bit surprising.

Suppose they use half of their revenue for buybacks—$8 million sounds like a lot, but in the market, it becomes a joke. The project currently has a market cap of around $1.3 billion (though it has fallen significantly from its peak), and its daily trading volume can soar to $30 million. In other words, half a day's trading volume can cover the entire annual buyback amount. The buying pressure is simply a drop in the bucket.

Can buybacks push the price up? It depends on cash flow. Without sustained and stable income support, buybacks become just marketing tactics—storytelling to the market. In this rapidly changing crypto market, don't be fooled by narratives in the face of data; learn to see through to the core.