Decentralized finance platform Hyperliquid has withdrawn an accumulated value of $1.2 billion in HYPE tokens from the open market. This massive supply absorption was executed through an ongoing buyback program funded by the protocol’s own revenue.
Buying pressure pushed the price of HYPE by 50% in the last week. Thanks to this boost, the crypto asset reached today, May 24, 2026, a new all-time high of $64 per unitas seen in the graph.
According to Forbes magazine, the increase in the asset “has very little to do with the confidence that external investors place in the asset.” Adding that “the difference between considering the current price as a verdict and considering it as a mechanism lies in understanding how such a buyback works,” indicated the magazine yesterday May 23rd.
This dynamic responds to the default settings of Hyperliquid’s revenue model. The platform simultaneously operates as a layer 1 network, an independent blockchain, and as a decentralized derivatives-oriented exchange, where users trade financial contracts without intermediaries.
The protocol mandatory diverts 99% of trading commissions from its perpetual and spot markets to the called Assistance Fund. This fund automatically acquires HYPE tokens on the open market, a mathematical rule that no governance council can vote to pause in order to save cash.
According to signature data DeFiLlama analytics, the network generated $1.2 billion in cumulative revenue between December 2024 and May 2026. In the third quarter of 2025 alone, the protocol bought back $316 million in its native token.
Purchased assets are held in the fund or sent to a burn wallet. In December 2025, the Hyper Foundation came to propose the burning of these currencies, which is equivalent to definitively eliminating 13% of the circulating supply. On that occasion the 85% voted in favor of burning, 7% against and 8% abstained.
The bullish environment is complemented by the success of its exchange-traded funds (ETF) in the US market launched a week ago, as reported by CriptoNoticias. These traditional financial products accumulated 75 million dollars in net capital inflows in just eight consecutive trading days.
Likewise, Coinbase, the largest cryptocurrency exchange in the United States, announced on May 14, 2026 its official integration with Hyperliquid. Through this alliance, the USDC stablecoin, became the base liquidity layer of the protocol.
However, this absolute dependence on commercial activity introduces a risk to the sustainability of the asset price. If trading volume in the perpetual and spot markets were to experience a severe or prolonged contraction, revenue generation would be reduced proportionally and the automated acquisition mechanism would stop. Without this constant and forced purchasing engine withdrawing tokens from circulation, the price of HYPE would be exposed to a downward correction, as the mathematical stimulus that currently counteracts the selling pressure in the open market disappears.
The key to assessing the long-term sustainability of HYPE will be to monitor daily transaction volume and network usage metrics, as these key indicators not only reflect the adoption of the exchange, but are the direct fuel that determines the future stability of its price in the market.