Hyperliquid (HYPE) has surged to new all-time highs near $65, propelled by massive protocol buybacks exceeding $1.16 billion and strong institutional interest via spot ETFs.
This decentralized derivatives exchange continues to capture market share with exceptional trading activity, turning fee revenue directly into token demand.
HYPE Price Rallies to New Record High
Hyperliquid’s HYPE token has experienced a powerful 70% rally over the last 10 days, breaking through previous resistance levels and setting fresh all-time highs at $64.72 on Sunday. The token climbed over 10%–15% in single sessions amid broader market consolidation, with year-to-date gains exceeding 166% while Bitcoin faced headwinds.
HYPE/USD daily chart. Source: TradingView
Trading volumes have been robust, rising by as much as 300% to $1.14 billion on May 24 from $281.5 million on May 13.
Open interest (OI) on Hyperliquid’s perpetuals has also swelled significantly, exploding by more than 93% to $2.95 billion on Monday, from $1.53 billion on May 13.
This rise in OI alongside price appreciation signals fresh capital inflows rather than mere short squeezes.
Hyperliquid’s open interest across all exchanges. Source: CoinGlass
HYPE’s rally to record highs over the last 10 days was accompanied by extremely large short liquidations, totaling $100 million over the same period.
HYPE liquidation data across all exchanges. Source: Coinglass
The rally demonstrates resilience, as HYPE has outperformed many majors, including Bitcoin (BTC) and Ether (ETH), which are down 6% and 8% over the same period, respectively.
Top Regulated Brokers
$1.16 Billion in Buybacks and ETF Flows Fuel HYPE's Rally
The core driver behind HYPE’s ascent is Hyperliquid’s aggressive buyback mechanism. The protocol routes 99% of its trading fees into its Assistance Fund, which purchases HYPE on the open market. Cumulative buybacks have now surpassed $1.16 billion since launch, creating consistent structural demand that absorbs sell pressure from unlocks and market volatility. In Q3 2025 alone, repurchases reached $316.8 million, underscoring the scale of this flywheel.
Source: Wu Blockchain
Data from DefiLlama and on-chain trackers confirm that nearly all fee revenue is recycled into token acquisitions, turning platform usage directly into deflationary pressure and holder value. This mechanism has proven more impactful than external hype, providing a reliable bid even during quieter periods. Quarterly figures have varied with volumes, but remain substantial, with analysts like those at Forbes noting it as a primary rally catalyst over speculative ETF flows.
Complementing buybacks are persistent inflows into spot HYPE ETFs from issuers like Bitwise (BHYP) and 21Shares (THYP). These funds have attracted tens of millions in inflows every single day since their launch on May 12, totaling $74.91 million.
On a market-cap-adjusted basis, HYPE ETFs have at times outpaced Bitcoin and Ether products, signaling strong institutional appetite. ETF purchases have reportedly exceeded daily buyback amounts in bursts, tightening supply further.
Spot HYPE ETF flows chart. Source: SoSoValue
Together, these drivers, protocol-native buybacks backed by real revenue and regulated institutional entry, have created a potent demand loop, distinguishing HYPE’s rally from purely narrative-driven moves.
How High Can HYPE Go?
Technical analysts generally see upside potential. Fibonacci retracement extensions from recent swings project ambitious targets, with the 200% Fibonacci level pointing toward $98.
This aligns with the measured target of a bull flag formation visible on the four-hour timeframe, also suggesting a breakout target at $100 as the flagpole height is projected upward.
HYPE/USD daily chart. Source: TradingView
Prominent voices in crypto are even more bullish. BitMEX co-founder Arthur Hayes has highlighted Hyperliquid’s revenue generation, real usage, and tokenomics, previously targeting $150 by August 2026.
“If the market believes that $HYPE can continue syphoning volumes away from CEXs and add new features to accelerate revenue growth, then $HYPE can pump in absolute terms,” Hayes said in a recent Substack essay, adding:
“My August 2026 target price for $HYPE is $150, which is roughly 5x higher than its current price of ~$30 at the time of writing this essay.”
Source: Arthur Hayes
Other experts and commentators echo this sentiment, pointing to the potential for HYPE to challenge larger tokens like BNB if it captures more market share in derivatives and beyond. Institutional accumulation, such as reports of a16z positions, and ETF momentum add credence to long-term re-rating.
My Take on HYPE
Hyperliquid’s rally to $65 reflects genuine product-market fit rather than fleeting speculation. As buybacks and ETF flows persist, the path higher looks supported by both mechanics and market enthusiasm.
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