HYPE hit new ATH near $73.7 because Hyperliquid fee buybacks
HYPE shoot reach new all-time high near $73.7 as Hyperliquid jack up di fee-driven buybacks. After di move, traders dey watch perps positioning closely: Lookonchain talk say one user (loraclexyz) open big HYPE short for Hyperliquid, but e reverse during di rally and wipe about $42M in perpetual profits in 18 days, add about $5.19M more loss.
Analyst 0xc06 talk say di breakout no be only sentiment. Hyperliquid annualized fees near $1.3B (2025 revenue about $822M), with daily fees often above $1.3M and sometimes over $1.6M, supported by about $2.6T trading volume in 2025. Di key mechanism: Hyperliquid dey route about 97% of collected fees into an Assistance Fund wey automatically dey buy HYPE for open market every day. Di fund don accumulate over $1.3B in purchases and dey hold about 28.5M HYPE, wey di analyst estimate fit remove about 14% of circulating supply annually on market-cap basis (roughly ~7% yearly), like continuous on-chain repurchase.
Main risk for HYPE traders: buyback intensity depend on trading volume. Also, token unlock wey dey schedule for June 6 (about 9.9M HYPE) fit add supply while di buyback fund still active, increase sensitivity around ATH levels and perps hedging flows.
Bullish
Bullish for HYPE because di news show say get clear, ongoing demand mechanism: Hyperliquid fee-to-Assistance-Fund buybacks (about 97% of collected fees) dey provide recurring spot-market buying wey dey support price during di strong perps-volume regime. Di reported short-squeeze like unwind (about $42M profit comot plus $5.19M extra loss) still show say leverage dey punished and fit keep momentum strong near ATH.
But di same setup dey create near-term sensitivity. If perps volume drop, buyback intensity fit fall. Plus, di June 6 unlock (~9.9M HYPE) fit increase circulating supply while market don near ATH levels. Traders suppose expect volatility around unlock timing and any sign say trading activity dey weaken.