TLDR
- Hyperliquid has directed over $1.16 billion in trading fee revenue toward open-market HYPE buybacks.
- The Assistance Fund receives most trading fees and buys HYPE through the market continuously.
- HYPE’s rally may reflect protocol buying, not only ETF demand or institutional investor interest.
- Hyperliquid’s buyback strength depends on trading volume, which can fall during weaker market periods.
- Hyperliquid Strategies holds about 20 million HYPE tokens, adding another large market buyer.
Hyperliquid has directed nearly all trading fee revenue into HYPE buybacks, according to the report. The total has passed $1.16 billion since launch. The activity has drawn attention as HYPE trades near record levels. It also adds a key angle to the token’s recent market move.
The report said HYPE reached an all-time high above $62 on May 21, 2026. Market coverage linked the rally to early spot Hyperliquid exchange-traded funds in the United States. However, Forbes contributor Zennon Kapron pointed to another driver. He tied much of the move to Hyperliquid’s built-in buyback system.
Assistance Fund Drives Open-Market HYPE Buying
Hyperliquid uses a system called the “Assistance Fund” to buy HYPE. The fund receives most trading fees from Hyperliquid’s perpetual and spot markets. DefiLlama data cited in the report says 99% of those fees flow into the fund. The fund then buys HYPE on the open market.
This structure means the protocol creates regular demand for its own token. The report said the process runs as part of the protocol’s revenue model. It does not depend on a company board vote. It also does not need a fresh approval each quarter.
The scale has been large by crypto market standards. Hyperliquid has generated more than $1.16 billion in total revenue since launch. The report said nearly all of that amount went toward buying HYPE. In the third quarter of 2025, the protocol bought $316.76 million of HYPE.
Kapron argued that this mechanism may explain the rally better than ETF demand. His view was presented as market commentary, not investment advice. He said the buyback system gives HYPE a steady source of support. Still, the strength of that support depends on trading activity.
HYPE Rally Faces Volume-Linked Risk
The buyback model relies on trading fees, and those fees depend on market activity. When more users trade on Hyperliquid, the protocol earns more revenue. As a result, the Assistance Fund has more funds available for HYPE purchases. This can support demand while trading volume stays high.
However, the same system can weaken during slower markets. Lower trading volume would reduce fee revenue. That would leave the Assistance Fund with less money for buybacks. Therefore, the price support may fall during a broad market downturn.
The report framed this point as a key risk for HYPE holders. The buyback does not create a fixed price floor. It creates a flow of demand linked to exchange activity. That demand can rise or fall as trading conditions change.
This makes HYPE different from tokens driven only by outside investor demand. ETF buying may bring new capital into the market. Yet Hyperliquid’s own revenue system has already supplied a large buyer. That buyer remains tied to daily use of the exchange.
Hyperliquid Strategies Adds Another Buyer
The report also pointed to Hyperliquid Strategies as another source of HYPE demand. The company trades on Nasdaq under the ticker PURR. It listed after a reverse merger with a former biotechnology firm. Its stated purpose is to build and hold a HYPE treasury.
Hyperliquid Strategies owns about 20 million HYPE tokens, according to the report. Its recent quarterly profit reached $152.5 million. Most of that profit came from unrealized gains on its HYPE holdings. Those gains depend on the token’s market price.
This creates another link between HYPE’s price and market demand. The company benefits when HYPE rises, and its treasury focus supports the token story. However, its earnings can also move lower when the token falls. That makes its balance sheet closely tied to HYPE’s market performance.
For now, Hyperliquid’s buyback system remains the central point. The protocol has used over $1.16 billion in trading fee revenue to buy back HYPE. ETF interest may matter, but the Assistance Fund has supplied steady market buying. That makes the buyback model a major part of the HYPE rally.
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