Citrini Research backs Hyperliquid token as crypto exchange cash flow draws investor focus

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Hyperliquid token gains attention

Highlights

Hyperliquid generates $1.06 billion in annualized fees and redirects over 90% of platform fees to buy HYPE via its Assistance Fund.
The Assistance Fund has purchased more than $2 billion in HYPE since January 2025, representing nearly half of sector token buyback activity last year.
Recent U.S. regulatory shifts allow exchanges like Coinbase and Kraken to offer crypto perpetual futures, intensifying competition as Hyperliquid leads in on-chain derivatives volume.

Research call highlights buyback model

As reported by Citrini Research, the firm describes Hyperliquid and its HYPE token as a compelling idea because the platform generates what it calls legitimate cash flow and channels most fees into token purchases through its Assistance Fund.

Hyperliquid operates a blockchain-based exchange where users trade perpetual futures tied to crypto and other assets, including commodities and private stocks. Its token, HYPE, is one of the strongest performers this year even as much of the broader digital asset market remains under pressure.

The report says more than 90% of platform fees are redirected to the Assistance Fund, which then buys HYPE on the open market. Citrini says cumulative purchases since the fund's launch in January 2025 have surpassed $2 billion, and adds that the program represented nearly half of all token buyback activity across the crypto sector last year.

DeFiLama data cited in the article shows the platform has generated $1.06 billion in annualized fees and about $220 billion in 30-day perpetual futures volume. That scale has helped Hyperliquid become the leading venue in decentralized perpetual futures trading, accounting for the majority of on-chain derivatives volume.

U.S. regulatory shift reshapes perp market

Hyperliquid's growth is also feeding into a broader industry push around perpetual futures, a segment that historically remains off limits to many American traders because of regulatory constraints. The investment case for HYPE is increasingly tied to the underlying operating performance of the exchange, though some analysts warn the buyback structure depends heavily on trading volumes staying elevated.

The Commodity Futures Trading Commission last month opens the door for certain crypto perpetual futures products to be offered under U.S. oversight. That move triggers a race among exchanges including Kraken and Coinbase to capture demand in a market that accounts for most global crypto trading activity.

Coinbase already expands its perpetual futures offering in the U.S., while Kraken is likely to launch its product later this month. Hyperliquid's revenue generation and market share set it apart from many crypto projects whose token valuations rely mainly on speculation, but its outlook still depends on whether derivatives activity remains strong.

In our earlier article on Coinbase’s derivatives push, we covered the launch of pre-IPO perpetual futures linked to SpaceX as part of the exchange’s broader diversification strategy. We also noted that despite the product expansion, COIN was still trading under key moving averages, with experts split between a cautious technical outlook and longer-term optimism tied to innovation in derivatives, staking, and custody.

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