Hyperliquid buybacks, not ETFs, may be driving HYPE’s record run

Hyperliquid’s native token HYPE has extended its record rally as new analysis points to the protocol’s built-in buyback system as a main driver behind the move, rather than ETF demand alone.

Forbes contributor Zennon Kapron argued that HYPE’s latest run is tied closely to Hyperliquid’s Assistance Fund, a protocol mechanism that uses trading fee revenue to buy HYPE in the open market. His report said Hyperliquid has used more than $1.16 billion in fee revenue for token purchases since launch.

The model differs from a normal company buyback. Hyperliquid does not run the process through a board vote or quarterly approval. The protocol routes revenue into the Assistance Fund, which then buys HYPE as part of its token model.

DefiLlama data supports that structure. Its Hyperliquid page states that 99% of fees from Hyperliquid Perps and the spot order book go to the Assistance Fund for buying HYPE, excluding some builder and unit protocol fees.

That creates a steady demand channel as long as trading remains active. When the exchange produces more fees, the buyback pool grows. When trading slows, the same support can shrink.

HYPE hits new highs 

Crypto.news price data showed HYPE trading near $63.16, up 13.72% in 24 hours, with a 24-hour high of $64.21. The same page listed HYPE’s all-time high at $64.23 on May 24, 2026.

The rally also pushed HYPE’s market cap above $15 billion, while its fully diluted valuation moved above $60 billion, according to the same crypto.news market page. The token also gained 47.28% over seven days and 53.79% over 30 days.

Earlier crypto.news coverage said HYPE broke above $60 on May 21 after a 16.15% daily gain. That report linked the move to ETF demand, DeFi-native speculation, thin float, and concentrated demand from traders and institutional products.

Another crypto.news report said HYPE had climbed nearly 49% in seven days as newly launched U.S. spot ETFs attracted more than $54 million in cumulative inflows. It also cited automated token buybacks as one factor behind the market move.

ETF demand adds a smaller second channel

Crypto.news reported that Bitwise launched its BHYP Hyperliquid ETF on the NYSE on May 15 with a 0.34% sponsor fee. The report said Bitwise would use 10% of that management fee to buy and hold HYPE on its balance sheet.

Bitwise said the move mirrors Hyperliquid’s own token model. In the same report, Bitwise CIO Matt Hougan said, “Hyperliquid’s token is explicitly designed so that rising trading activity on the Hyperliquid platform directly benefits token holders.”

The ETF channel still appears smaller than the protocol’s fee-funded buying. Crypto.news reported that Bitwise’s BHYP and 21Shares’ THYP had gathered more than $5.6 million in total net inflows after launch. That amount sits far below the hundreds of millions of dollars that the Assistance Fund has reportedly bought in some quarters.

Kapron’s argument centers on that scale gap. ETF inflows can bring visibility and institutional access, but the buyback engine has operated as a larger and more direct source of HYPE demand.

Volume remains the key risk for HYPE

The buyback model depends on trading activity. Hyperliquid earns fees when users trade perpetuals and spot markets. Those fees then help fund HYPE purchases through the Assistance Fund, according to DefiLlama’s revenue description.

That structure can support the token during active markets. It can also weaken during slow periods. If trading volume drops, fee revenue falls, and the Assistance Fund has less capital available for buybacks.

Forbes cited that risk in its analysis, noting that the model works best when trading volume stays high. The report said a market downturn could reduce fee revenue and weaken the buyback support behind HYPE.

That makes the HYPE rally a test of Hyperliquid’s trading engine. The token has benefited from buybacks, ETF headlines, and rising market interest. Its next test may depend on whether Hyperliquid can keep volume high enough to feed the same demand cycle.