On-chain data from multiple sources has cast a spotlight on the supply dynamics of HYPE, the native token of the Hyperliquid ecosystem. Two notable events have emerged: significant deposits by institutional firms to Coinbase and an aggressive buyback program by the ecosystem support fund that is currently outpacing team token sales by a margin of 2-to-1.
Institutional deposits to Coinbase
According to Lookonchain, crypto investment firms Multicoin Capital and Bitwise moved a combined $8.74 million worth of HYPE to the exchange in a short window. Multicoin Capital transferred 137,100 HYPE (approximately $7.51 million) to Coinbase Prime, while Bitwise deposited 22,463 HYPE (about $1.23 million) to Coinbase roughly nine hours earlier. While exchange deposits are often interpreted as potential sell signals, they can also relate to custody, staking, or internal rebalancing. Nevertheless, the size and timing of these transfers have drawn market attention.
Support fund buybacks outstrip team selling
Data from MLM Monitor reveals that the Hyperliquid ecosystem support fund has been repurchasing HYPE at a pace roughly double the selling by current and former team members. In December 2025, 4.93 million HYPE tokens (0.493% of total supply, worth around $270 million at current prices) were unlocked and distributed to the team. Of that, 1.19 million HYPE was sold directly on the open market for $32.5 million, and another 3.14 million HYPE was moved to an OTC platform with a transfer value of roughly $132 million. In total, about 4.33 million HYPE was sold for approximately $165 million, equating to a monthly average of 540,000 HYPE or $20.6 million.
Over the same period, the support fund spent about $364 million to buy back approximately 9.8 million HYPE. This translates to an average monthly buyback of 1.23 million HYPE ($46 million) – more than twice the team’s selling rate. The aggressive buying has acted as a stabilizing force, absorbing sell-side pressure and potentially providing a floor for the token’s price.
Market implications
The interplay between the support fund’s buybacks and ongoing team unlocks will be critical for HYPE’s supply-demand balance. While current buyback velocity is dominant, any slowdown in fund activity or acceleration of team sales could shift the equilibrium. Additionally, the OTC transfers, while designed to minimize market impact, could eventually contribute to sell pressure. Investors should monitor on-chain metrics for early signs of change and consider the broader market context before making decisions.
