Hyperliquid’s buyback is funded by the Assistance Fund, which channels virtually all trading fee revenue into open-market HYPE purchases, making the buyback a central driver of the recent rally.

Hyperliquid’s native token HYPE has rallied to record levels largely due to the built-in Assistance Fund buyback, which purchases HYPE in the open market using trading fees rather than ETF demand alone.

Analysts note ETF inflows are relatively small (tens of millions) compared with quarterly buybacks (hundreds of millions), suggesting buybacks more directly influence price formation.

Analyst Simon Dedic frames Hyperliquid as a structural challenger to Binance, with a potential flippening powered by a transparent, on-chain model.

Hyperliquid processed about $2.6 trillion in notional trading volume earlier in the year, nearly double Coinbase’s on-chain activity, underscoring its rapid growth.

The buyback approach is contrasted with Pump.fun, where buybacks have not sustained price support due to dilution and whale selling, highlighting the importance of revenue quality.

Hyperliquid’s case hinges on on-chain revenue, ETF flows, and the flippening narrative—as opposed to traditional price action—as the drivers of future momentum.

ETFs launched by 21Shares and Bitwise have attracted about $70 million in net inflows since mid-May, contributing to market sentiment.

Bloomberg data show roughly $53 million in cumulative inflows across THYP and BHYP since their May launch, signaling growing institutional demand for HYPE exposure.

Analysts caution that the rally depends on sustaining trading volume; a downturn could weaken the buyback mechanism and HYPE’s support.

The buyback’s effectiveness relies on ongoing ETF inflows and trading activity, with a sustained downturn potentially weakening the buyback floor.

Hyperliquid has generated over $1.16 billion in cumulative revenue since launch, with the majority redirected to buybacks, including about $316.76 million in Q3 2025.