Hyperliquid will account for almost half of the total token buyback activity in the crypto market in 2025, according to a new report from Citorini Research, highlighting that the decentralized exchange’s revenue model is one of the strongest in the space.
According to Citrini’s Substack publication released on Monday, more than 90% of the fees generated by Hyperliquid will go to the protocol’s support fund, and the proceeds will be used to make purchases. $HYPE Public market tokens.
The research firm says the scale of the program sets Hyperliquid apart from most crypto projects. $HYPE It was converted into a token backed by what is described as meaningful cash flow generation.
“Unlike the majority of memetic cryptocurrencies (including Bitcoin), $HYPE Generate legitimate cash flow. ”
Citrini argued that while the buyout mechanism itself is attractive, it is the size of the support fund that sets the model apart. The company estimates that Hyperliquid buybacks accounted for nearly half of the token buybacks recorded across the digital asset industry this year.
At the same time, Hyper Liquid ($HYPE) continues to outperform most of the market. The token recently reached an all-time high near $75 and was trading up more than 8% in the past 24 hours during Thursday’s Asian trading session, according to data from crypto.news.
Earnings growth continues to support share buybacks
Recent developments regarding Hyperliquid’s financial infrastructure could further strengthen its share repurchase program.
As crypto.news previously reported, $HYPE Coinbase rose more than 12% on June 8th after becoming official $USDC Hyperliquid’s financial deployer.
Coinbase said it enabled the AQAv2 framework through two designated financial wallet addresses and was responsible for the deployment of the decentralized exchange. $USDC spare.
According to Coinbase, this framework routes most of the revenue generated from Hyperliquid. $USDC Bringing the Treasury back into the protocol ecosystem. The exchange previously estimated the deal could add up to $200 million to HyperLiquid’s annual revenue.
Hyperliquid receives up to 99% of protocol revenue $HYPE In the case of buybacks through support funds, increased state revenue could expand the amount available for future token buybacks.
Further interest is also coming from prominent industry players. BitMEX co-founder Arthur Hayes is said to be involved again $HYPE According to a blockchain tracking report covered by crypto.news, wallets associated with him reportedly withdrew tokens from Bybit after his earlier exit during the market correction.
Institutional interest continues to grow
Beyond protocol revenue, Citrini pointed to growing investor participation through exchange-traded products linked to Hyperliquid.
The research firm highlighted the recently launched HyperLiquid ETF by Bitwise and 21Shares as another source of market attention. The two products generated nearly $600 million in trading volume and attracted more than $136 million in net inflows in the first three weeks of trading, according to SoSoValue data.
Although Hyperliquid recently overtook Solana on a per-token price basis, Citrini noted that Solana’s market cap is still more than twice the size. $HYPE‘s. Still, the company maintained that HyperLiquid still has room to gain further market share in the decentralized derivatives space.
“Hyperliquid has a wide runway,” Citorini wrote. “We think there is still significant market share to capture.”
