Hyperliquid Burns $1.53 Million in HYPE Tokens Over 24 Hours as Price Dips

Decentralized derivatives exchange Hyperliquid has bought back and permanently destroyed 21,200 $HYPE over the past 24 hours, allocating $1.53 million to the purchase at an average price of $72.31 per token, according to data from the on-chain analytics platform Onchain Lens.

The same analytics platform also reported that, since the token launched, Hyperliquid has permanently removed a cumulative total of 50.47 million $HYPE from circulation. That represents 5.05% of the maximum supply of 1 billion $HYPE and, at the current market price, is worth approximately $3.51 billion.

Burns Continue as Token Price Declines

The latest buyback took place during a period of falling prices for the token. On Nov. 12, $HYPE dropped by 3.45%, trading at $69.52 at press time, according to TradingView. Earlier this autumn, the token had traded above $90.

Because Hyperliquid funds its buybacks in dollars rather than in tokens, the exchange can acquire a larger quantity of $HYPE for the same amount of money whenever the token's price declines. Every token removed this way is permanently locked out of circulation, so each buyback adds irreversibly to the share of supply already destroyed.

Cumulative Fees Exceed $1.4 Billion

Data from DeFiLlama shows that Hyperliquid has generated $1.41 billion for $HYPE holders since December 2024. Over the past 30 days, the decentralized exchange earned $68.82 million, while its earnings over the past week totaled $15.04 million.

In the most recent 24-hour period, the platform collected approximately $1.46 million in fees, slightly less than the amount it allocated to the buyback in the same period. DeFiLlama's figures also show that Hyperliquid currently earns more in fees than Ethereum, Tron, and Base — a group that includes some of the largest networks in the sector.

The largest share of the burned supply, 48.85 million $HYPE, was repurchased by the Assistance Fund. The fund automatically receives between 97% and 99% of the fees generated by perpetual and spot trading on Hyperliquid, with the remainder directed to the HLP liquidity pool and to the builders of individual markets. That arrangement links the pace of buybacks to trading revenue, since the fund's purchasing power grows and shrinks with the fees the exchange collects.

The Assistance Fund purchases $HYPE on the open market and sends the tokens to the "0xfefe...fefe" address, a system address that has no private key. In December 2025, Hyperliquid validators formally recognized the tokens held at this address as burned. Because no private key exists, tokens sent to the address can never be moved or recovered by anyone.

AQAv2 Upgrade Routes $USDC Yield to Buybacks

In August 2026, Hyperliquid introduced the AQAv2 upgrade, under which approximately 90% of the yield generated by the platform's $USDC reserves now flows to the Assistance Fund. Each of these transfers delivers between $14 million and $16 million to the fund.

Beyond the Assistance Fund's market purchases, $HYPE is also destroyed through network activity. Around 1.24 million $HYPE has been burned through fees and slashing on HyperCore, the base layer of Hyperliquid, while another 376,060 $HYPE has been burned as gas fees on HyperEVM, the network's smart contract layer. Together, these three streams — open-market purchases, HyperCore fees and slashing, and HyperEVM gas — account for the cumulative 50.47 million $HYPE removed from circulation to date.

This article was originally published on U.Today.