The HYPE buyback narrative doesn’t look so appealing once you do the math.
People on X are hyping Hyperliquid’s “buybacks and burns funded directly by fees”: over the past 24 hours, it bought and burned 21,040 HYPE, spending $1.64 million at an average price of $77.93.
But there’s another line in the same roundup that many people skipped over: HyperLabs recently transferred HYPE worth $14.49 million to the team wallet.
14.49 divided by 1.64 is about 8.8. In other words, it would take nearly nine days of buybacks to offset this one transfer from the team. A transfer to the team wallet doesn’t mean they’ll sell right away, but the tokens have gone from “locked up” to “ready to sell at any time”—and that changes things.
I’m not saying Hyperliquid is bad. It’s definitely the leader among perpetual DEXs, with monthly trading volume holding steady at around $200 billion. But don’t focus only on the burn side. Buybacks provide a steady stream of daily buying, while team unlocks and transfers could bring selling pressure at any time. You have to look at both sides.
Anyone who talks only about burns and not releases either doesn’t understand, or is doing it on purpose.
#HYPE
People on X are hyping Hyperliquid’s “buybacks and burns funded directly by fees”: over the past 24 hours, it bought and burned 21,040 HYPE, spending $1.64 million at an average price of $77.93.
But there’s another line in the same roundup that many people skipped over: HyperLabs recently transferred HYPE worth $14.49 million to the team wallet.
14.49 divided by 1.64 is about 8.8. In other words, it would take nearly nine days of buybacks to offset this one transfer from the team. A transfer to the team wallet doesn’t mean they’ll sell right away, but the tokens have gone from “locked up” to “ready to sell at any time”—and that changes things.
I’m not saying Hyperliquid is bad. It’s definitely the leader among perpetual DEXs, with monthly trading volume holding steady at around $200 billion. But don’t focus only on the burn side. Buybacks provide a steady stream of daily buying, while team unlocks and transfers could bring selling pressure at any time. You have to look at both sides.
Anyone who talks only about burns and not releases either doesn’t understand, or is doing it on purpose.
#HYPE