The Hyperliquid protocol, central to PURR’s strategy, had generated more than $1.4 billion in cumulative revenue as of early October. It had used more than $1.26 billion of that income to buy back and burn HYPE, its native token.
Funded by trading fees, the buybacks are credited with helping keep HYPE near its all-time high. The token was trading 14% below its peak. That performance contrasts with Bitcoin and Ethereum, which are down significantly more from their highs.
Buyback pressure is central to HYPE’s value proposition. However, future token unlocks for the team and community could pose a risk. A slowdown in trading volume could also reduce the fees that fund buybacks.