Hyperliquid up 10% after $1.16B buybacks, ETF inflows

Hyperliquid rose nearly 10% to trade above $63 after the protocol repurchased about $1.16 billion of HYPE tokens with trading-fee revenue and saw roughly $53 million in cumulative ETF inflows. The token’s market value exceeded $15 billion, putting HYPE at the 11th-largest crypto by market capitalization.

The buyback program operates through Hyperliquid’s Assistance Fund, which directs most perpetual and spot trading fees into open-market HYPE purchases. Since the fund began operating, it has used about $1.16 billion in fee revenue to repurchase tokens. Those repurchases have absorbed selling pressure during scheduled token unlocks.

An ETF analyst reported roughly $53 million in total inflows to two HYPE-focused ETFs since their May launches. The ETFs provide direct market exposure to HYPE and add a second source of demand alongside on-chain fee revenue.

On-chain trading data show Hyperliquid handled about $2.6 trillion in notional trading earlier in the year, compared with about $1.4 trillion for Coinbase over the same period. The volume figures have prompted debate about whether decentralized trading venues are approaching the scale of some centralized exchanges.

Blockchain analyst Simon Dedic called Hyperliquid a structural challenger and commented, “The day HYPE flips BNB is the day this industry proves it can replace the things that are holding it back. And it might be closer than most people think.”

Market participants note the buyback mechanism is tied to trading volume. If volume remains high, fee revenue can sustain repurchases; if trading falls substantially, the Assistance Fund would have less capacity to buy tokens and price support from repurchases would weaken. Large token unlocks and concentrated holdings could increase selling pressure if holders decide to sell.

A separate token that spent more than $350 million on repurchases still trades well below its prior peak, down about 80% from a September high. Analysts point to dilution and large-holder selling as factors that offset buyback demand in that case. Observers contrast that token’s revenue profile with Hyperliquid’s, noting HYPE’s fees come largely from perpetual contracts and professional traders rather than retail-driven meme cycles.

Current market dynamics combine on-chain fee-driven buybacks and early ETF flows, which have supported recent buying interest in HYPE. Future price direction will depend on trading volumes, continued institutional demand for HYPE products, and wider market conditions.