Hyperliquid Buys Back $1.16B HYPE as Token Price Hits Record Highs

Hyperliquid’s Rally Is Being Driven by Its Buyback Machine, Not ETFs

Hyperliquid’s HYPE token has become one of crypto’s strongest-performing assets this year, climbing above $62 and sitting in the top 10 cryptocurrencies by market cap. Much of the public narrative credited the rally to the launch of the first U.S. spot Hyperliquid exchange-traded funds (ETFs) and growing institutional adoption.

But a recent Forbes research shows that the far more important force behind the price surge sits inside the protocol itself.

Hyperliquid directs nearly all of its trading revenue into continuously buying HYPE on the open market through a mechanism known as the Assistance Fund. Data from Defillama show roughly 99% of fees generated from the platform’s perpetual futures and spot markets are routed into the program.

Unlike corporate buybacks, the purchases are not discretionary. The protocol automatically converts trading fees into HYPE purchases block by block, regardless of market conditions. Since launch, Hyperliquid has generated more than $1.16 billion in cumulative revenue, with almost all of it deployed toward buying its own token. In the third quarter of 2025 alone, the protocol reportedly repurchased $316.8 million worth of HYPE.

The scale dwarfs recent ETF inflows. Spot Hyperliquid ETFs launched in May and have attracted $75 million in cumulative total net inflows, a meaningful milestone for a relatively young asset. But compared with a buyback engine spending hundreds of millions of dollars per quarter, the ETF flows remain modest. The structure effectively creates a permanent bid underneath the token.

Additional support comes from Hyperliquid Strategies, a Nasdaq-listed treasury company trading under the ticker PURR. The company exists largely to accumulate and hold HYPE and currently controls around 20 million tokens. Its latest quarterly profit of $152.5 million came almost entirely from unrealized gains tied to its HYPE holdings.

A third layer of demand flows from stablecoin reserves. Under Hyperliquid’s USDC arrangement, up to 90% of reserve yield generated from USDC balances on the platform is redirected toward buybacks and ecosystem incentives. Together, the mechanisms funnel multiple revenue streams into the same token.

Hyperliquid’s Buybacks Strongly Linked to Revenue Flow

The underlying business itself remains strong. Hyperliquid has emerged as one of the dominant decentralized perpetual futures exchanges, generating substantial real trading fees rather than relying on inflationary token incentives that characterized earlier crypto cycles. Still, the structure creates a critical dependency: HYPE’s price is increasingly tied to trading volume on a single exchange.

That relationship cuts both ways.

As crypto activity cools, buybacks decline alongside revenue. Hyperliquid’s quarterly repurchases have already fallen from $316.8 million in Q3 2025 to $192.3 million in Q1 2026, a drop of roughly 40% over two quarters.

At the same time, more locked tokens will eventually enter circulation, increasing potential sell pressure that the Assistance Fund must absorb simply to stabilize prices.

The result is a token whose bull case and risk profile are fundamentally linked. As long as perpetual futures activity continues expanding, the buyback engine remains powerful. But if trading volumes contract sharply during a broader crypto downturn, the mechanism supporting the price could weaken just as investors seek liquidity most aggressively.

For now, Hyperliquid’s rally reflects more than market enthusiasm. It reflects a protocol systematically buying its own token at scale.