HYPE, the native token of decentralized derivatives platform Hyperliquid, was trading near $73, according to Bitcoin.com. The move has renewed attention on the project’s fee-driven buyback and burn structure, which crypto trader Pentosh1 said is set to expand after the rollout of AQAv2. He said that change could help support HYPE’s performance in the next bull market.
Since November 2024, Hyperliquid has repurchased and burned 462 million HYPE worth about $1.27 billion. Roughly 99% of protocol fees are directed to buybacks, while the platform’s annualized protocol revenue is currently estimated at about $600 million to $950 million.
AQAv2, short for Aligned Quote Asset v2, is scheduled to begin on Aug. 26. Under the plan, around 90% of the yield generated by more than $5 billion in USDC reserves on the platform will be routed into the Assistance Fund, with the first transfer expected on Oct. 3. Market participants estimate the upgrade could add another $135 million to $160 million in annual buybacks. Coinbase and Circle, named in May as Hyperliquid’s official USDC deployment partners, have also pledged to stake sizable amounts of HYPE to help get the mechanism running.
HYPE, the native token of decentralized derivatives platform Hyperliquid, is nearing $73, according to Bitcoin.com. Crypto trader Pentosh1 said the token’s fee-based burn structure is set to expand after the AQAv2 upgrade, a change he said could help support HYPE in the next bull market.
Hyperliquid has burned 462 million HYPE since November 2024
Bitcoin.com reported that Hyperliquid has repurchased and burned 462 million HYPE since November 2024, with the amount valued at about $1.27 billion. About 99% of protocol fees are allocated to buybacks.
The platform’s annualized protocol revenue is currently estimated at roughly $600 million to $950 million.
AQAv2 will route USDC reserve yield into the Assistance Fund
AQAv2, or Aligned Quote Asset v2, is scheduled to start on Aug. 26. Under the plan, around 90% of the yield generated by more than $5 billion in USDC reserves on the platform will be directed into the Assistance Fund. The first transfer is expected to arrive on Oct. 3.
Market participants estimate AQAv2 could add another $135 million to $160 million in annual buyback capacity.
Coinbase and Circle have pledged HYPE staking support
The report added that Coinbase and Circle, which were designated in May as Hyperliquid’s official USDC fund deployment partners, have both committed to stake sizable amounts of HYPE to help launch the mechanism.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
