Hyperliquid HYPE Climbs to New Peak Above $50 Following Strong Buyback Program

Hyperliquid’s native token HYPE surged to a new all-time high Wednesday, continuing its explosive growth this year. The decentralized exchange, known for on-chain perpetual trading, has seen record activity driving the rally.

HYPE broke the $50 level for the first time, up around 8% in 24 hours. The token is now 430% higher since its April low and 15 times its late-November debut at roughly $3.

The surge has been fueled by Hyperliquid’s automated buyback mechanism, which absorbs tokens from the market and reduces circulating supply.

Record-Breaking Trading Volumes

August derivatives volume reached $357 billion, up from $319 billion in July and nearly ten times higher than last year, according to DefiLlama. Spot trading volumes also set a new record, surpassing $3 billion for the week ending 24 August, per Blockworks.

Hyperliquid collected $105 million in trading fees during August, the highest monthly total this year. Much of this revenue flows into the Assistance Fund, an automated on-chain system that buys back HYPE, sustaining buy pressure. The fund’s holdings have grown from 3 million to 29.8 million tokens, now valued at over $1.5 billion.

Institutional Adoption

Digital asset custodian BitGo recently added support for Hyperliquid’s HyperEVM network, opening institutional access to HYPE and related applications.

Analyst Take

ByteTree analysts Shehriyar Ali and Charlie Morris called Hyperliquid a “powerhouse” and the largest decentralized perpetual futures platform. “Its strong fundamentals, record fee generation, and market dominance make it a standout in DeFi,” they noted.

However, analysts cautioned that HYPE’s fully diluted valuation exceeds $50 billion, while only a third of tokens are in circulation. Scheduled token unlocks starting in November could test demand, they added. “Despite recent gains, the protocol’s robust on-chain activity underpins its valuation,” the report concluded.