Hyperliquid Supply Pressure Rises as Buybacks Continue

Hyperliquid's HYPE token has seen a fresh influx of supply, with Hyperion unstaking 519,480 tokens worth $28.56 million. This increase in float has raised concerns about the protocol's ability to absorb additional liquidity.

Despite trading at 28% below peak levels, newly liquid tokens have not attracted significant inflows to exchanges. However, this could be due to distribution not yet materializing, as the Assistance Fund continues generating structural demand.

The market now hinges on whether these unstaked tokens remain in self-custody or begin feeding exchange liquidity. Additionally, AQAv2 is gearing up to direct 90% of reserve yield from USD Coin [USDC] balances into the Assistance Fund, broadening HYPE's demand base.