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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

MeNews
ME News Report, May 24 (UTC+8), BlockBeats reports that Forbes author Zennon Kapron pointed out that the recent surge in HYPE is mainly due to Hyperliquid's built-in buyback mechanism, rather than ETF expectations. The article reveals that Hyperliquid uses its over $1.16 billion in accumulated trading fee income to repurchase HYPE on the open market through the Assistance Fund. In comparison, the initial capital inflow for the ETF was only a few tens of millions of dollars, while protocol buybacks can reach hundreds of millions of dollars per quarter, becoming the core factor supporting the current price. However, this mechanism depends on trading volume, so if the market declines, trading fee income and buyback support may weaken simultaneously. (Source: MLion)
HYPE8.06%
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TheSkyInsideTheMirroredSphere
· 8h ago
Zennon Kapron's analysis perspective is quite fresh; previously, everyone was focused on ETF speculation.
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ColdBrewSparklingWater
· 10h ago
1.16 billion in fee income, this cash flow is considered top-tier in DeFi.
View OriginalReply0
NeonStreetReflections
· 10h ago
I previously thought it was an ETF news leak, but it turns out it’s mechanism-driven; my understanding needs to be updated.
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GlassFishTankArbitrage
· 10h ago
DeFi projects can accumulate 1.16 billion in fees, indicating substantial real trading volume
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GateUser-dd8dffab
· 11h ago
The buyback mechanism gives HYPE a dividend-like attribute similar to stocks, changing the long-term holding logic.
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SugarAirdropDream
· 11h ago
So, is the HYPE increase due to fundamentals rather than hype? Rare
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Rain-SoakedGlassLeverage
· 11h ago
Hyperliquid's model design is quite clever, with fees directly reinvesting into the token price.
View OriginalReply0
RetroRadioIridescence
· 11h ago
The name Assistance Fund is well chosen, and it truly fits the “assistance price” as well.
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0xLateComer
· 11h ago
Returning to value capture from narrative trading, this wave of HYPE's rise has quite high quality
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GateUser-bee672a5
· 11h ago
Fee income is a better indicator of platform health than TVL; this metric should be given more importance.
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