Karla Barker 
Hyperliquid’s native token $HYPE has extended its record rally, and new analysis suggests the protocol’s built-in buyback system is the main driver, not ETF demand alone.
Forbes contributor Zennon Kapron argues that $HYPE’s recent surge is closely tied to Hyperliquid’s Assistance Fund. This protocol mechanism uses trading fee revenue to buy $HYPE on the open market. His report states that Hyperliquid has used over $1.16 billion in fee revenue for token purchases since launch.
The mechanics behind the buyback model
The model differs from a typical company buyback. Hyperliquid does not go through a board vote or quarterly approval. Instead, protocol routing sends revenue into the Assistance Fund, which then buys $HYPE as part of its token economics. DefiLlama data supports this structure. Its Hyperliquid page shows 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.
This creates a steady demand channel as long as trading remains active. When the exchange generates more fees, the buyback pool grows. But when trading slows, that same support can shrink.
$HYPE hits new highs
Crypto.news price data shows $HYPE trading near $63.16, up 13.72% in 24 hours, with a 24-hour high of $64.21. The same page lists $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. The token gained 47.28% over seven days and 53.79% over 30 days.
Earlier coverage linked $HYPE’s move above $60 on May 21 to ETF demand, DeFi-native speculation, thin float, and concentrated demand from traders and institutional products. Another report noted that newly launched U.S. spot ETFs attracted over $54 million in cumulative inflows. It also cited automated token buybacks as a factor.
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. 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. Bitwise CIO Matt Hougan stated that “Hyperliquid’s token is explicitly designed so that rising trading activity on the Hyperliquid platform directly benefits token holders.”
Still, the ETF channel appears smaller than the protocol’s fee-funded buying. Bitwise’s BHYP and 21Shares’ THYP gathered over $5.6 million in total net inflows after launch. That amount sits far below the hundreds of millions of dollars the Assistance Fund has reportedly bought in some quarters. Kapron’s argument centers on that scale gap: ETF inflows bring visibility and institutional access, but the buyback engine operates as a larger, 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 fund $HYPE purchases through the Assistance Fund, according to DefiLlama’s revenue description. That structure can support the token during active markets but can 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, noting the model works best when trading volume stays high. A market downturn could reduce fee revenue and weaken the buyback support behind $HYPE. That makes the current 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.