May 24
The Real Reason HYPE Exploded? Hyperliquid’s Billion-Dollar Buybacks
Hyperliquid spent over $1.16 billion buying back HYPE token, and Forbes contributor Zennon Kapron says that the automatic buyback engine is pushing prices higher.
➤ Hyperliquid has spent over $1.16 billion on automatic buybacks of its HYPE token, driven by a significant portion of its trading fee revenue. ➤ A recent governance upgrade (HIP-3) enabled perpetual markets for real-world assets like gold, silver, and crude oil, boosting trading volume and consequently, the buyback program. ➤ While the buyback mechanism provides price support, it is heavily dependent on trading volume, posing a risk during market downturns when volume and fee revenue may decrease.