Hyperliquid faces a 9.92 million HYPE token unlock on October 6, worth close to $860 million, after contributors claimed far less than scheduled in September. Institutional buying from Bitwise and ongoing token burns add demand, but both remain too small to absorb the unlock alone if contributors sell heavily.
Hyperliquid's core contributors are heading toward another large token release, and the September numbers already show a warning sign. On September 6, contributors claimed just 0.19% of their scheduled allocation, worth $36.56 million, far below the intended 2.32% release.
That gap matters because Hyperliquid faces a much larger event next month. On October 6, 9.92 million HYPE tokens unlock, valued near $860 million and representing nearly 3.9-4.5% of circulating supply. The value of these new tokens is significantly larger than the average daily spot volume, so heavy distribution could shrink market liquidity and pressure the price downward.
However, the September allocation may not reach the market immediately. As a result, contributor wallet activity in the coming weeks will help determine whether the October release triggers real selling pressure or another muted distribution.
Bitwise adds $10.5 million in HYPE demand
While October brings a potential supply increase, institutional demand is building on the other side of the equation. After four days without purchases, Bitwise's BHYP clients bought $10.5 million in HYPE on September 4, at an average price near $85 per token, totaling about 123,500 HYPE. Cumulative BHYP purchases now stand at $166.3 million.
Yet that Friday purchase equates to less than 1% of the 9.92 million tokens set to unlock in October. This gap shows BHYP cannot absorb the headline unlock on its own if contributors sell heavily. Continued institutional demand will likely soften incremental selling rather than eliminate it, and further BHYP inflows would strengthen that buffer, while stalled purchases would leave market liquidity carrying more of the burden.
HYPE burns add another layer of demand
Demand for HYPE extends beyond outside buyers, because Hyperliquid's trading activity generated $823,800 in HYPE-directed revenue over the last 24 hours from $859,500 in fees, funding the purchase of 9,730 tokens. Those tokens, worth $829,500 and bought near $85.27, were then permanently burned, removing purchased HYPE from circulation rather than simply shifting it between holders.
According to OnChain Lens, lifetime removals of HYPE have reached 48.42 million tokens, or 4.84% of the 1 billion max HYPE supply. Current burns cannot match major unlocks anytime soon, but they continually lower the available pool of tokens over time, and increasing trade volume could speed up that internal demand.
Source: AMBCrypto
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