HYPE Token Hits All-Time High Over $50 as Hyperliquid Boosts Buybacks

Hyperliquid’s HYPE Token Climbs Above $50 on Record Trading and Buybacks

Hyperliquid’s native token, HYPE, surged past $50 on Wednesday, extending a spectacular rally fueled by robust trading activity and the protocol’s automated buyback program. Over the past 24 hours, HYPE jumped roughly 8%, bringing its gains to 430% since April and nearly 15x since its November launch at around $3.

Trading Activity Reaches New Heights

August marked a record month for Hyperliquid, with derivatives volumes hitting $357 billion, up from $319 billion in July and nearly ten times last year’s levels, according to DefiLlama. Spot trading also reached a milestone, exceeding $3 billion for the week ending Aug. 24, Blockworks data shows.

These flows generated $105 million in trading fees during August—the protocol’s largest monthly earnings this year. A portion of these fees feeds Hyperliquid’s Assistance Fund, an on-chain mechanism that buys back HYPE from the market, reducing circulating supply and sustaining upward price pressure.

Since the fund’s January launch, its holdings have grown from 3 million to 29.8 million HYPE, now worth over $1.5 billion, reinforcing the token’s rally. Meanwhile, BitGo’s recent support for the HyperEVM network has expanded institutional access to HYPE and associated applications.

Analysts Applaud Fundamentals but Note Risks

ByteTree analysts Shehriyar Ali and Charlie Morris called Hyperliquid a “powerhouse” in DeFi, highlighting its dominance in decentralized perpetual futures and record fee generation. “Hyperliquid’s fundamentals and market share make it one of the most compelling protocols in DeFi today,” they wrote.

However, the analysts cautioned about the token’s high valuation. HYPE now trades at a fully diluted valuation exceeding $50 billion, while only about a third of its supply is in circulation, yielding a market capitalization of $16.8 billion. Upcoming token unlocks starting in November could create selling pressure, potentially testing demand.

“Despite recent gains, HYPE’s strong on-chain activity continues to support its valuation,” the analysts noted, emphasizing the token’s fundamentals amid a high-growth trading environment.