Forbes author points out that the rise in HYPE is mainly not driven by ETF expectations, but rather by Hyperliquid's built-in buyback mechanism. Hyperliquid uses nearly all of its trading fee income (over $1.16 billion in total) to repurchase HYPE on the open market through the Assistance Fund. Compared to the initial ETF inflow of tens of millions of dollars, the buyback scale can reach hundreds of millions of dollars per quarter, becoming the core support for the current price. However, this mechanism relies on trading volume; if the market declines, fee income and buyback strength may decrease simultaneously.

MarsBitNews

2026-05-24 03:20:13

Abstract generation in progress

Mars Finance News, on May 24th, Forbes author Zennon Kapron stated that the recent rise of HYPE is not mainly driven by ETF expectations, but more from Hyperliquid's built-in buyback mechanism. The article states that Hyperliquid nearly all trading fee income (totaling over $1.16 billion) is used through the Assistance Fund to repurchase HYPE in the open market. Compared to the initial ETF capital inflow of tens of millions of dollars, the protocol buyback scale can reach hundreds of millions of dollars per quarter, which may be a more core factor supporting the current price. However, this mechanism also depends on trading volume; if the market declines, fee income and buyback support may weaken simultaneously.

HYPE0.57%

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PatchNotes

· 05-24 07:05

But when trading volume crashes, both sides get wiped out, and the risk exposure is significant.

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Lime-ColoredStop-LossLine

· 05-24 06:52

The buyback logic is indeed hardcore, much more solid than the ETF narrative.

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TidalShellReflection

· 05-24 04:19

1.16 billion in transaction fee revenue, reaching the ceiling level for DEXs

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GateUser-9568ced5

· 05-24 04:02

Billions of dollars in buy orders each quarter—who can withstand that?

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ByteBard

· 05-24 03:57

Assistance Fund, this name is well-chosen, truly a helpful assist

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GlassDomeObservatory

· 05-24 03:45

Transaction fee-driven buybacks → Price of the coin rises → Attracts more trading, creating a positive cycle that's quite appealing

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Don’tLetTheLiquidationAlarm

· 05-24 03:43

But during this model's bull market, everything is great, while the bear market might spiral downward.

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RugProofMaybe

· 05-24 03:43

Hundreds of millions vs. tens of millions, the scale is crushing, and the price support indeed holds up well

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MistBlueLily

· 05-24 03:40

Check the subsequent trading volume data; on-chain metrics are more important than candlestick charts.

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MintConditionMax

· 05-24 03:35

Hyperliquid has figured out the platform token model this time.

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Opinion: The HYPE buyback scale can reach hundreds of millions of dollars per quarter, serving as the main driver to boost the token price

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