- Hyperliquid used over $1.16B in trading revenue to automate HYPE buybacks through its Assistance Fund.
- HYPE briefly surpassed Solana’s fully diluted valuation after climbing above $62 during heavy trading activity.
- Hyperliquid’s buyback model depends on sustained trading volume to keep funding long-term HYPE demand.
HYPE climbed above $62 on May 21, 2026, pushing Hyperliquid’s fully diluted valuation briefly past Solana’s during heavy trading activity. According to Forbes contributor Zennon Kapron, the rally has been driven largely by Hyperliquid’s automated buyback system rather than ETF demand. Since launch, the protocol has directed more than $1.16 billion in trading fee revenue into open-market HYPE purchases through its Assistance Fund.
Assistance Fund Drives HYPE Demand
According to Kapron, Hyperliquid routes about 99% of trading fees into its Assistance Fund. The fund continuously purchases HYPE directly from the open market using protocol revenue. Unlike public companies, Hyperliquid does not require quarterly approval for repurchase activity. The mechanism operates automatically during all market conditions and trading periods.
DefiLlama data cited by Kapron showed Hyperliquid generated over $1.16 billion in cumulative revenue since launch. In the third quarter of 2025 alone, the protocol reportedly bought $316.76 million worth of HYPE. However, buybacks later declined to $255.05 million in Q4 2025 and $192.25 million in Q1 2026.
Multiple Revenue Streams Support Purchases
Alongside the Assistance Fund, Hyperliquid Strategies has also accumulated roughly 20 million HYPE tokens. The Nasdaq-listed company reportedly focuses entirely on holding and expanding HYPE exposure. Its latest quarterly profit reached $152.5 million, largely tied to unrealized gains from HYPE holdings.
Meanwhile, USDC integration added another source of funding connected to protocol purchases. According to Kapron, up to 90% of reserve yield generated from USDC balances supports buybacks and ecosystem incentives. Billions of dollars in USDC reportedly remain on the platform at any given time.
Trading Volume Remains Central To Buybacks
Hyperliquid’s perpetual futures platform has generated trillions of dollars in cumulative trading volume. Those trading fees continue funding the Assistance Fund and broader buyback structure. Kapron noted the protocol differs from earlier crypto projects that relied heavily on token incentives to create activity.
However, Kapron also warned the mechanism depends heavily on sustained trading volume. Lower market activity could reduce fee generation and weaken ongoing buyback support for HYPE prices.
