Hyperliquid Rises 10% After $1.16B Buybacks, ETF Inflows

Hyperliquid’s HYPE token climbed nearly 10% to above $63 after the protocol directed over $1.16 billion of trading-fee revenue into open-market buybacks. The repurchases pushed HYPE’s market value above $15 billion and ranked the token 11th globally by market capitalization.

Hyperliquid routes most perpetual and spot fee revenue into an Assistance Fund that executes open-market HYPE purchases. The fund has used fee proceeds to repurchase tokens; traders noted those buybacks absorbed selling pressure around token unlocks and coincided with recent price gains.

An ETF analyst estimated roughly $53 million in cumulative inflows into two HYPE-focused exchange-traded products since their May launches. Market participants noted the ETF flows have provided an additional route for institutional exposure to HYPE.

Analysts note the repurchase program depends on trading volume. A sustained drop in on-chain volume would lower fee revenue for the Assistance Fund and reduce its capacity to repurchase tokens, analysts noted.

Blockchain analyst Simon Dedic described Hyperliquid as a structural challenger to major exchanges, writing that the protocol’s transparent trading model differs from Binance’s BNB and that an overtaking of BNB would indicate the industry can replace current exchange leaders.

On-chain figures show about $2.6 trillion in notional trading volume earlier this year for Hyperliquid, compared with roughly $1.4 trillion for Coinbase. Those volume figures have been cited in debates about the scale of decentralized trading venues.

Investors compared Hyperliquid’s buybacks with other token repurchase efforts that have not sustained price support. Pump.fun has spent more than $350 million on repurchases but remains well below its prior highs after dilution and heavy selling by large holders. Analysts contrasted the projects by pointing to differences in revenue sources: Hyperliquid’s fees are tied to large perpetual trading volumes and professional users, while some other projects rely on revenue that fluctuates with retail-driven cycles.

Traders and analysts are tracking on-chain fee allocation, trading volume and derivatives activity to assess how long the buyback floor might hold if market conditions change.