Buyback Attack for Hyperliquid (HYPE)

In the world of crypto assets, the “buyback” strategy became highly popular in 2025, and Hyperliquid emerged as one of the leading projects in this area.

• According to reports, since the beginning of 2025, Hyperliquid has spent approximately 644–645 million USD on token buybacks.
• This figure represents around 46% of all token buybacks.
• The number of tokens repurchased is reported to be at least 21.36 million HYPE, which corresponds to approximately 2.1% of the total token supply.

In short, while the “buyback” strategy dominates the market conversation, Hyperliquid has managed to capture a significant portion almost on its own.

Why So Fast and Massive?

There are several notable factors behind Hyperliquid’s aggressive approach:

1. Commitment to the revenue model
   Hyperliquid directs a portion of its revenue from trading fees, derivatives volume, and spot transactions toward its buyback program. Reports indicate that a fixed percentage of the revenue generated from these activities is used to repurchase HYPE tokens.

2. Effort to reduce market supply pressure
   The purpose of buybacks is to decrease the circulating token supply and create value for token holders. The lower the supply, the more pronounced the effect of demand can become.

3. High-volume trading activity
   For instance, in August 2025, Hyperliquid reportedly broke records in derivative trading volume and trading fees, which in turn provided substantial funding for its buyback program.

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Market Position

In terms of buybacks, the second-largest project is LayerZero, which announced spending around 150 million USD to repurchase its ZRO tokens—approximately 5% of its supply. However, this move is considered a one-time initiative, whereas Hyperliquid continues to operate a consistent and systematic buyback program.

Across the industry, since the beginning of 2025, a total of over 1.40 billion USD has been spent on token buybacks. Within this figure, Hyperliquid’s share is particularly dominant. As a result, Hyperliquid has outpaced not only its competitors but also surpassed the combined total of most other projects’ buyback expenditures.

Although this appears to be a strong move, there are some important risks investors should consider:

• A solid buyback program depends on consistent revenue sources. If trading volume or fee income declines, the sustainability of buybacks could come into question.
• Token supply unlocks and vesting schedules may create future selling pressure. Some reports highlight that upcoming unlocks for HYPE could pose market risks.
• A buyback program alone does not guarantee price appreciation; market sentiment, overall crypto conditions, and macroeconomic factors all play significant roles.