Hyperliquid's HYPE token trades roughly 22% below its September record, even though the platform still leads decentralized perpetual futures. Its share of real-world asset perpetuals has dropped from approximately 80% to 26%, and token unlocks are ahead.
HYPE hovered around $76 to $77 on Oct. 25, 2026, well beneath its Sept. 23 peak near $98. Yet the Hyperliquid exchange remains the dominant decentralized perpetual futures venue, according to Bitcoin News.
Fees fund a large token buyback
Hyperliquid runs its own layer one blockchain for perpetual futures and spot trading. It directs most net protocol fees toward buying HYPE through its Assistance Fund.
Research firm Castle Labs says cumulative protocol revenue exceeded $1.4 billion, with approximately 97% to 99% of eligible net fees historically supporting token purchases. Coinglass data shows $11 billion in open interest on Hyperliquid over the last day, an estimated 55% to 57% of tracked decentralized open interest.
Rivals take real-world asset volume
However, competition is growing. Hyperliquid's share of real-world asset perpetual futures volume reportedly fell from approximately 80% in July to 26% in recent measurements. Centralized exchanges collectively captured around 64%, with Binance and OKX expanding into tokenized equities and commodities.
Decentralized rivals Lighter, Aster, and Variational are also chasing volume with increasingly similar products and fee structures. Meanwhile, Bitmex co-founder Arthur Hayes has questioned whether HYPE can outperform competing crypto assets.
Token unlocks could test the buybacks
Supply may pose the largest complication. Core contributors control an allocation of approximately 23.8% of maximum supply, with vesting extending into 2027 and 2028. Some monthly schedules indicate releases approaching 9 million to 10 million tokens, although actual distributions can differ.
Only about 22% of maximum supply circulates, and buybacks depend heavily on trading activity. Lower volume means fewer fees and fewer repurchases, which could make newly released tokens harder to absorb.
Institutions offer a counterweight
Spot HYPE exchange-traded funds and publicly traded treasury vehicles have expanded access. Cumulative net inflows for the three current HYPE ETFs stand at $303.5 million, according to SoSoValue records.
Source: Bitcoin News
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