Hyperliquid Token Buybacks and Burns Exceed $1.3 Billion

Hyperliquid (HYPE) has seen its cumulative token buyback and burn amount exceed $1.3 billion (approximately KRW 1.781 trillion). This follows a structure where transaction fees are used to purchase tokens, which are then burned on-chain. HyperliquidNews, tracking Hyperliquid-related data, reported that as of September 18 at 6:49 AM KST, the cumulative buyback and burn amount surpassed $130 million.

Hyperliquid's support fund is utilized for buying back and burning its native token. It's important to note that buybacks and burns should not be considered the same concept. Buybacks refer to purchasing tokens from the market, while burns involve sending purchased tokens to an irrecoverable address to remove them from circulation. Therefore, cumulative buyback amounts do not equate to equivalent reductions in circulating supply.

This latest figure reflects the cumulative amount of token buybacks and burns by Hyperliquid's support fund. In this structure, trading activity and changes in Hyperliquid's supply are connected. Increased transaction volume leads to higher fee revenue, which expands the funds available for buybacks; subsequent burning reduces total supply. Conversely, decreased trading activity and lower fee income would reduce buyback amounts.

However, it remains difficult to determine Hyperliquid's price or market performance solely based on the $130 million cumulative amount. Buyback volumes are influenced by trading volume and fee revenue, while actual burned quantities and timing should be considered as separate metrics. Cumulative buyback amounts, actual burn volumes, and current circulating supply are distinct indicators that must be viewed separately.