Hyperliquid Uses 99% of $1.16 Billion Trading Fees to Buy Back HYPE Tokens

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Hyperliquid (HYPE) has surged to new all-time highs (ATHs) amid an aggressive token buyback program and the recent launch of spot exchange-traded funds (ETFs) in the USA. While some commentators believe that the launch of ETFs is a major turning point for the token, others, like Forbes’ Zennon Kapron, believe that the blockchain firm’s aggressive HYPE token buyback program is a bigger catalyst, propelling the token to new highs.

HYPE is currently trading around the $63 valuation at press time, up 44% on a weekly basis. The non-custodial digital asset and derivatives exchange has made its mark swiftly and is expanding aggressively after a record trading activity. The firm has reportedly funneled almost $1.16 billion, roughly the entirety of its revenue, into its ambitious buyback program, which has given the HYPE token a major boost even in the middle of this bear market. 

Here is the price action of HYPE from the last 30 days:

The token is up 55% on a monthly basis and has delivered a robust performance, performing admirably at a time when most other top digital currencies are either flat or bleeding value. HYPE’s progress is tied to the thumping success of its non-custodial exchange platform, where everything from prediction contracts to crypto/stock perpetuals and spot trading is available. 

Hyperliquid’s Automated, Relentless Use of Transaction Fees

According to data from DefiLlama, the Hyperliquid system automatically allocates 99% of transaction fees back to its assistance fund. The money is then used to make the token even scarcer, fueling a continuous cycle of supply shock that drives the token’s price higher and higher, impervious to market sentiment and crypto cycles.

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Revenue from the platform can reach up to $100 million per month, creating the perfect recipe for a deflationary digital asset. 

The Future

While Hyperliquid has garnered praise for its robust exchange services, it is also under scrutiny because of centralization concerns despite its non-custodial nature. Early investors and company executives reportedly hold nearly 81% of the staked HYPE supply and are redirecting profits toward buybacks. 

This is not an ideal situation for a platform like this, which is growing so aggressively, with tens of billions of dollars in value flowing through the system daily. The platform also offers limited transparency for third-party investigators. It received a lot of flak back in 2025 for reportedly manipulating markets, especially when it comes to small-market-cap memecoins and the like, for its own benefit, but this allegation has largely been denied.