Crypto platform Hyperliquid is set to face a major token unlock event: on October 6, 2026, 9.92 million HYPE tokens worth approximately $860 million will be released. This could have a significant impact on liquidity and create risks for existing holders. By comparison, on September 6, 2026, only 0.19% of tokens worth $36.56 million were distributed — well below the planned level. "This creates significant dilution risk if participants begin actively selling," analysts note.
At the same time, institutional demand for HYPE continues to grow. Bitwise's BHYP investor base purchased $10.5 million worth of tokens on September 4, bringing total purchases to $166.3 million. Each purchase averaged around $85 per token, equivalent to approximately 123,500 HYPE. Despite strong interest, these purchases are not sufficient to fully absorb the October unlock if a significant portion of tokens is sold in a short timeframe.
Meanwhile, trading activity on Hyperliquid is supporting demand. Over the past 24 hours, $823,800 in revenue was generated and directed toward HYPE purchases, with 9,730 tokens burned. The average price of the latest purchase was $85.27. A cumulative total of 48.42 million HYPE has been removed, representing 4.84% of the 1 billion token cap. While current burns do not offset large unlocks, they gradually reduce the available supply and may support internal demand.
The burn mechanism operates through the Assistance Fund — an automated system that directs the majority of the protocol's fee revenue toward HYPE purchases, which are then removed from circulation. Tokens accumulated in the fund were officially recognized as burned following a validator decision in December 2025. The share of fees directed to the fund ranges from 97% to 99% depending on the category. Additional revenue may come from the distribution of USDC reserves under an agreement with Coinbase and Circle, with the first payment scheduled for October 3.
As such, HYPE is currently under the simultaneous influence of two factors: the approaching October unlock, which could intensify supply-side pressure, and ongoing burns that support demand. The further trajectory will depend on how actively participants sell their received tokens and whether institutional interest can partially absorb that pressure. Key indicators will be the behavior of contributor wallets and the dynamics of BHYP purchases.
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This material is prepared exclusively for informational purposes and does not constitute financial advice or a recommendation.