Hyperliquid's HYPE token price driven by quarterly billion-dollar buybacks

Hype Finance news: On May 24, Forbes author Zennon Kapron wrote that HYPE’s recent price rise has not been primarily driven by ETF expectations, but rather by Hyperliquid’s built-in buyback mechanism. The article states that Hyperliquid has used nearly all of its trading fee revenue—accumulating over $1.16 billion—through the Assistance Fund to repurchase HYPE on the open market. In comparison to the tens of millions of dollars in initial ETF inflows, the protocol’s buyback volume can reach hundreds of millions of dollars per quarter, potentially serving as a more fundamental factor supporting the current price. However, this mechanism depends on trading volume; if the market declines, both fee revenue and buyback support may weaken simultaneously.