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Hyperliquid's HYPE token price rises mainly due to continuous buybacks, not just ETF launches.

Protocol Fundamentals
23 May 2026
Forbes
View Source
Bullish
pluang ai news

Hyperliquid's HYPE token recently hit an all-time high, driven largely by the protocol's mechanism that funnels nearly all trading fees into buying back HYPE tokens. This continuous buyback, embedded in the protocol, supports the token price independently of external investor demand, including recent US spot ETF launches. The protocol's strong business fundamentals and dominant market share in on-chain perpetual-futures trading generate substantial revenue, which is almost entirely reinvested into token buybacks. However, this creates a price mechanism highly dependent on trading volume, which can amplify gains but also risks sharp declines if volume falls, making HYPE a leveraged bet on sustained trading activity rather than broad market adoption.

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