TLDR:
- HyperCore removed 22,477 HYPE from circulation on March 13 alone, exceeding staking rewards issued that day
- At the current pace, roughly 8.09 million HYPE tokens will exit circulation over the next 12 months
- Solana inflates by ~25.19M SOL yearly; Hyperliquid’s model is moving in the exact opposite direction
- Buyback volume scales with HIP-3 trading activity, linking protocol growth directly to token supply reduction
Hyperliquid’s HYPE token is now shrinking in supply, not growing. On March 13, 2026, HyperCore repurchased 49,323 HYPE tokens at roughly $37.12 each.Â
That same day, only 26,846 HYPE went out as staking and validator rewards. The net result: 22,477 tokens permanently removed from circulation in a single day.
HyperCore Buybacks Push HYPE Into Deflationary Territory
The numbers are straightforward. Buybacks exceeded distributions by over 22,000 tokens on March 13. At that pace, monthly removal reaches 674,310 HYPE. Annualized, that projects to roughly 8.09 million tokens leaving circulation each year.
That stands in sharp contrast to Solana. Solana’s staking and validator system inflates supply by approximately 25.19 million SOL annually. Hyperliquid is moving in the opposite direction entirely.
The buyback mechanism is also price-sensitive by design. When HYPE trades higher, each dollar buys fewer tokens. When prices fall, buybacks become more aggressive. This creates a natural counterweight to supply pressure during market downturns.
HyperCore funds buybacks using protocol revenue. That revenue flows primarily from trading activity across the network. More trades mean more fees, and more fees mean larger buybacks.
Deflation
On March 13, 2026, HyperCore repurchased 49,323 HYPE at an average price of approximately $37.12.
On the same day:26,846 HYPE were distributed as rewards to stakers and 24 validators
Net Effect
49,323− 26,846 = 22,477 HYPENet tokens permanently removed from… https://t.co/7xkv8s72Ws pic.twitter.com/1zpGTWYSqh
— Hyperliquid Hub
(@Hyperliquid_Hub) March 14, 2026
Protocol Revenue and HIP-3 Adoption Drive the Buyback Flywheel
The structure here matters. HIP-3 adoption feeds directly into trading volume. Higher volume generates more protocol revenue. That revenue funds the repurchase program. Larger repurchases deepen the deflationary effect.
According to data shared by Hyperliquid Hub on X, the March 13 buyback alone removed tens of thousands of tokens in one session. That is not a one-time event. It reflects an ongoing mechanical process tied to network usage.
Validators and stakers received 26,846 HYPE that day across 24 validators. That distribution is the only outflow in the equation. Everything repurchased beyond that figure is gone from the circulating supply permanently.
The buyback-to-reward ratio now favors deflation. That ratio can shift with price and volume. But the current trajectory shows a supply curve bending downward.
No other major layer-1 network is running this kind of structure at scale right now. The data from March 13 makes that clear.
The post HYPE Token Enters Net Deflation as HyperCore Buybacks Outpace Staking Rewards appeared first on Blockonomi.
Â
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.