Decentralized finance platform Hyperliquid has withdrawn a total of $1.2 billion worth of HYPE tokens from the public market. This massive supply absorption was carried out through an ongoing buyback program funded by the protocol’s own revenues.
Buying pressure pushed the price of HYPE up 50% last week. Thanks to this boost, the crypto asset reached today, May 24, 2026. New all-time high of $64 per unitAs seen in the graph.
According to Forbes, wealth growth has “little to do with the confidence outside investors have in the assets.” The magazine added, “The difference between thinking about current prices as a verdict and thinking of them as a mechanism lies in understanding how buybacks work,” the magazine noted yesterday, May 23.
This dynamic Compatible with Hyperliquid’s revenue model default settings. The platform operates simultaneously as a Layer 1 network, an independent blockchain, and a decentralized derivatives-oriented exchange where users trade financial contracts without intermediaries.
The protocol mandates that 99% of transaction fees from the perpetual and spot markets be directed to a so-called support fund. This fund will automatically acquire HYPE tokens on the open market. This is a mathematical rule and the Governance Council cannot vote to suspend it to save cash.
The network generated $1.2 billion in cumulative revenue from December 2024 to May 2026, according to data from analytics firm DeFiLlama. In the third quarter of 2025 alone, the protocol bought back $316 million in native tokens.
Purchased assets are stored in a fund or sent to a burn wallet. In December 2025, the Hyper Foundation proposed incinerating these coins, which would amount to a complete elimination of 13% of the circulating supply. At that time, 85% voted in favor of the burning, 7% opposed and 8% abstained.
As reported by CriptoNoticias, the bullish environment is complemented by the success of an exchange-traded fund (ETF) in the US market that was launched a week ago. These traditional financial instruments accumulated $75 million in net capital inflows in just eight consecutive days of trading.
Similarly, Coinbase, the largest cryptocurrency exchange in the United States, announced a formal integration with Hyperliquid on May 14, 2026. Through this partnership, the USDC stablecoin will It has become the basic liquidity layer of the protocol..
However, this absolute dependence on commercial activity poses risks to the sustainability of asset prices. If perpetual market and spot market trading volumes experience a severe or prolonged contraction, revenue generation will be difficult. proportionally reduced and the automatic retrieval mechanism is stopped. If this continuous and forced buying engine does not withdraw tokens from circulation, the price of HYPE will be subject to downward correction as the mathematical stimulus that currently counteracts the selling pressure in the open market disappears.
The key to assessing HYPE’s long-term sustainability is to monitor daily trading volume and network usage metrics. Because these important indicators not only reflect exchange adoption, but also directly fuel determining the future stability of prices in the market.
(Tag Translation) Altcoin
