Hyperliquid Buys Back Its Own Token Daily—Is This Why HYPE Stays Close to Its High?

Hyperliquid (CRYPTO: HYPE) uses about 97% to 99% of its trading fees to buy back its own HYPE token every day. By September 26, 2026, this daily buyback had removed roughly 47.5 million HYPE tokens from circulation, costing about $1.32 billion in total. As of October 10, HYPE is trading around $84, about 14% below its all-time high of nearly $98.

This small gap stands out compared with the broader cryptocurrency market. Bitcoin (CRYPTO: BTC) is currently trading about 34% below its peak, Ethereum (CRYPTO: ETH) is down about 50%, XRP (CRYPTO: XRP) has dipped roughly 61%, Solana (CRYPTO: SOL) is down about 63%, and Cardano (CRYPTO: ADA) is facing a staggering 92% decline from its high.

So, is Hyperliquid’s daily buyback keeping HYPE steady near its peak while Bitcoin struggles?

Hyperliquid Spends Nearly All Its Fees Buying Back HYPE

Hyperliquid operates as a crypto exchange, primarily known for perpetual futures—contracts that let traders speculate on a coin’s price without an expiration date. Each trade incurs a fee, and nearly all of this fee income goes into Hyperliquid’s Assistance Fund, which actively buys HYPE tokens on the open market.

The tokens are then burned, permanently removing them from HYPE’s total supply. The 47.5 million tokens burned were valued at around $4 billion as of the October 10 price. This continuous buyback creates a consistent demand for HYPE, as long as traders keep engaging and paying fees.

Bitcoin Has No Revenue to Buy Back Its Coins

Conversely, Bitcoin operates quite differently. It has no central company, revenue stream, or fund to buy back its own coins, so buyers’ willingness to pay at any given moment drives its value. This also applies to other major cryptocurrencies like Ethereum, XRP, Solana, and Cardano.

This fundamental difference lets investors evaluate HYPE like a business, based on the revenue it generates, rather than just market sentiment. Citrini Research has highlighted HYPE as one of its top crypto investment ideas for 2026, noting its strong cash flow. Interestingly, HYPE reached a new high in September while Bitcoin remained significantly lower.

Token Unlocks and Slower Trading Could Weaken the HYPE Buyback

Despite its advantages, the buyback strategy does face limitations. One key challenge is supply. As of October 10, only about 222 million HYPE tokens were trading on the market, with a maximum supply of around 950 million after accounting for burnings. As community and team tokens gradually unlock in the coming years, the Assistance Fund will need to manage more sellers to keep the price stable.

Another challenge is trading volume since the fees that fund the buyback are directly tied to trading activity. If traders become less active—often the case when market prices dip—the fund will buy back fewer tokens. Notably, despite the daily buyback support, HYPE dropped around 4% in the week leading up to October 10, and large holders sold off $22 million worth of HYPE in late September.

Is the Hyperliquid buyback why HYPE Remains Close to Its High?

The Hyperliquid buyback is the strongest reason HYPE trades only 14% below its peak, while Bitcoin is about 34% below its high. Sustained daily buying from fee revenue is a key feature that sets HYPE apart from other major cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano.

However, HYPE holders face the downside that this price support largely relies on consistent trading volume, which could diminish as more tokens unlock over time. If HYPE’s decline from its peak starts to resemble Bitcoin’s 34% drop, while the buyback continues, it may indicate that the Assistance Fund is struggling to maintain price levels on its own.

On the other hand, if HYPE climbs back above $98—about 16% higher—it may suggest the market values Hyperliquid’s fee income as a significant asset.

Contact [email protected] for any questions or corrections.