Hyperliquid token buyback model supports HYPE gains amid crypto market pullback

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Hyperliquid HYPE token buyback

Highlights

Hyperliquid channels 97% of trading fee revenue—about $1.3 billion annually—into automated buybacks, supporting HYPE's demand as most crypto assets fall.
Bitwise launches the Bitwise Hyperliquid ETF (BHYP) on May 15, gathering $55 million in two weeks and buying HYPE with 10% of its management fee.
HYPE hits an all-time high of $64.74 on May 26, up over 85% since early April, but potential supply unlocks and U.S. regulatory uncertainty remain risks.

Automated buybacks drive token demand

As reported by Weiss Ratings, Hyperliquid channels roughly 97% of its trading fee revenue into an automated fund that buys HYPE in the open market and removes it from circulation. The exchange operates in perpetuals trading, a segment that the article says accounts for about 78% of all crypto trading volume in 2025, and Hyperliquid now handles about 70% of on-chain futures trading.

The platform clears more than $8 billion in trades on a normal day, according to the article, and earns about $1.3 billion a year in fees. More than $1.3 billion has already been spent buying HYPE, and the fund now holds over 44 million tokens.

The mechanism resembles a continuous stock buyback program, with the protocol using trading activity to support token demand automatically rather than through periodic corporate decisions. That structure helps explain why HYPE rises even as Bitcoin and much of the broader crypto market correct over the past month.

ETF access expands exposure, but risks remain

Investor access broadens on May 15 when Bitwise launches the Bitwise Hyperliquid ETF, BHYP, on the New York Stock Exchange, giving buyers a way to gain exposure through a standard brokerage or IRA account. The article says the fund uses 10% of its management fee to buy and hold HYPE, reinforcing the same demand dynamic tied to the token.

In its first two weeks, BHYP pulls in more than $55 million, while money leaves Bitcoin and Ethereum ETFs during May. HYPE reaches an all-time high of $64.74 on May 26 and is up more than 85% since early April, although the token later trades near $59, roughly 21% below its recent peak.

The article also points to constraints that could weigh on the token. Only about one-fifth of HYPE tokens are in circulation, with additional supply scheduled to unlock over time, and perpetuals exchanges in the U.S. remain in a regulatory gray area that could either open a larger market or keep American traders sidelined.

Our earlier article on Coinbase highlighted the company’s expanding role in the digital-asset ecosystem, including a new operational function as Hyperliquid’s USDC treasury deployer. It also noted mixed signals for COIN amid insider selling and bearish technicals, even as new partnerships broadened Coinbase’s regulated-market reach.

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