HYPE climbed above $62 on May 21, 2026, pushing Hyperliquid's fully diluted valuation briefly past Solana's during heavy trading. According to Forbes contributor Zennon Kapron, the rally was driven largely by the protocol's automated buyback system rather than ETF demand. Since launch, Hyperliquid has directed more than $1.16 billion in trading fee revenue into open-market HYPE purchases through its Assistance Fund.
HYPE Breaks $62, Flips Solana in Valuation
Kapron noted that roughly 99% of trading fees flow into the Assistance Fund, which continuously buys HYPE directly from the open market using protocol revenue. Unlike public companies, Hyperliquid requires no quarterly approval for repurchases — the mechanism runs automatically across all market conditions and trading sessions.
How $1.16B Buyback Works
DefiLlama data cited by Kapron shows Hyperliquid generated over $1.16 billion in cumulative revenue since launch. In Q3 2025 alone, the protocol bought $316.76 million worth of HYPE. Buybacks then declined to $255.05 million in Q4 2025 and $192.25 million in Q1 2026.
Buyback Pace Slows Quarter by Quarter
Alongside the Assistance Fund, Hyperliquid Strategies has accumulated roughly 20 million HYPE tokens. The Nasdaq-listed company focuses entirely on holding and expanding HYPE exposure, reporting Q1 2026 profit of $152.5 million, largely from unrealized gains on HYPE holdings.
Hyperliquid Strategies' Holdings and Profit
USDC integration added another funding source. According to Kapron, up to 90% of reserve yield generated from USDC balances supports buybacks and ecosystem incentives. Billions of dollars in USDC remain on the platform at any given time.
USDC Integration and Trading Volume Backing
Hyperliquid's perpetual futures platform has generated trillions of dollars in cumulative trading volume, with fees continuing to fund the Assistance Fund and broader buyback structure. Kapron noted the protocol differs from earlier crypto projects that relied heavily on token incentives to drive activity.
Yet Kapron also warned the mechanism depends heavily on sustained trading volume. Lower market activity could reduce fee generation and weaken ongoing buyback support for HYPE prices.