Woofun AI reports that Hyperliquid’s ecosystem support fund is repurchasing HYPE tokens at a rate twice that of team member sales, creating a significant net demand surplus. This divergence in supply and demand mechanics highlights the fund’s active role in stabilizing the token against internal sell pressure.

The primary source of this supply originated in December 2025, when 4.93 million HYPE tokens were unlocked for team members. This allocation represented 0.493% of the total supply and carried a valuation of approximately $270 million at prevailing market prices. The distribution marks a scheduled release of equity to insiders rather than an ad-hoc event.

Team members deployed distinct strategies to liquidate these holdings, splitting the volume between public and private channels. Specifically, 1.19 million HYPE was sold directly on the open market, generating $32.5 million in immediate liquidity. A larger portion, totaling 3.14 million HYPE, was transferred to an over-the-counter (OTC) platform, with a transfer value of roughly $132 million.

Aggregating these transactions reveals that 4.33 million HYPE was ultimately sold for a combined total of approximately $165 million. On a monthly average, this selling activity equates to roughly 540,000 HYPE per month, or about $20.6 million in monthly outflows. This consistent drip-feed of supply requires continuous absorption to prevent downward price drift.

Per Woofun AI, the support fund countered this pressure by spending $364 million to acquire roughly 9.8 million HYPE over the same period. This equates to a monthly buyback average of 1.23 million HYPE, or around $46 million, executing purchases at twice as fast a rate as the team’s disposals. The fund’s aggressive accumulation effectively neutralized the immediate impact of the team’s liquidations.

While the current buyback velocity supports price stability and positive market sentiment, the long-term equilibrium depends on capital reserves and the future unlock schedule. Investors must monitor whether the fund can sustain this pace as sell pressure potentially accelerates. This marks a critical phase where data-driven observation of fund activity becomes essential for assessing HYPE’s supply dynamics.