Tag: Hyperliquid (HYPE)

Will HYPE continue its uptrend or will it follow the broader market downtrend?

It’s quite difficult to spot a popular cryptocurrency whose price hasn’t tumbled by 20% or even more in the last few weeks.

Hyperliquid (HYPE), though, is an evident exception, and its solid performance has caused analysts to envision further gains in the near future.

The Lone Survivor

Bitcoin (BTC) has crashed to a 14-month low of around $69,000, Ethereum (ETH) is struggling to keep the $2,000 level, while Ripple’s XRP and Solana (SOL) have plummeted by 27% in the past seven days. However, Hyperliquid (HYPE) has somehow defied the ongoing massacre and currently trades at around $32, representing a 50% increase on a two-week scale.

Its strong performance comes amid a string of positive developments surrounding the ecosystem. Earlier this week, Ripple announced that its institutional prime brokerage platform (called Ripple Prime) enabled support for Hyperliquid. Meanwhile, Grayscale recently revealed that it was encouraged by the rise in perpetual futures trading for non-crypto assets on the decentralized exchange.

Before that, on-chain data revealed growing interest in HIP-3 activity amid skyrocketing trading volume and open interest. These metrics continued to increase as the market tumbled in the past few days, reaching new peaks of $1B in OI and $4.8B in 24-hour volume.

HYPE has been the subject of numerous optimistic predictions, and many analysts believe there’s fuel left for additional gains. The analyst, using the X moniker Crypto General, expects volatility ahead and an eventual explosion above $100 later this year. Speaking on the matter was also Zach, who argued there are “so many reasons to buy and hold HYPE.”

There are so many reasons to buy and hold $HYPE.

The more it takes over market share and volume, the bigger the buybacks are, which is one of the reasons it’s so strong.

Really would love to get a spot entry around yearly open of $25 but who knows if it’ll come

— Zach (@CryptoZachLA) February 4, 2026

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The popular analyst Crypto Tony chipped in, too, suggesting that HYPE could do “magical things when the market conditions are right.” Those interested in additional bullish forecasts for the token can read our dedicated article here.

Can It Follow the Pack?

It is important to note that the broader crypto market remains shaky, and sustained bearish conditions could eventually weigh in on HYPE as well.

Some analysts believe this is a likely outcome. The one using the X handle, Greeny, predicted that the native token of Hyperliquid could plummet to $20 later in 2026.

In just one year, Hyperliquid skyrocketed from $2.4 million to $41 million in fees.

Blockchain charts have evolved dramatically over the past year. Currently, the space is being dominated by Hyperliquid.

Meanwhile, traditional heavyweights like Bitcoin, Ethereum, and Solana are falling behind fast.

Hyperliquid Leads the Pack

CryptoRank’s latest data found a striking reshuffling in terms of blockchain fee leadership over the past year. Hyperliquid is emerging as the dominant force. The network’s fees skyrocketed 1,600% after surging from $2.4 million in October 2024 to a whopping $41 million in October 2025, driven by HIP-3’s launch, which paved the way for permissionless perpetuals and strategic fee reductions that fueled record trading volume.

This meteoric rise has left once-dominant networks like Ethereum and Solana in the dust, as Ethereum’s fees halved to $21.6 million and Solana saw a 34% decline to $6.6 million. This essentially reflected users’ shift to faster, cheaper alternatives and a cooldown in meme-driven activity.

Other chains like BNB Chain and Base also saw impressive growth, but none rival Hyperliquid’s explosive climb. Meanwhile, Bitcoin’s on-chain activity dwindled as fees plunged 73% during the same period amid fading Ordinals and Runes interest.

As reported by CryptoPotato earlier, Hyperliquid cemented itself as a dominant force in Q2 2025 as it registered $648 billion in trading volume for the period and $1.57 trillion over 12 months. Its revenues topped $300 million, while its share of the perpetual DEX market surpassed 60%, roughly ten times greater than the nearest rival.

This success can be attributed to the HYPE token airdrop and fair point system in late 2024, which drove massive user adoption. Meanwhile, popular traders, like James Wynn, added further attention, and the token buyback-and-burn program supported HYPE’s price stability during the said quarter.

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Even VanEck researchers noted that Hyperliquid effectively lured high-value users from Solana.

HYPE Faces Sell Pressure

Lately, however, HYPE has experienced considerable volatility. It started the week above $45 before tumbling sharply on October 11 and settling into a downtrend through October 17. Despite brief recoveries, the token failed to regain previous highs and wrapped up the period at $34.2, coinciding with the broader market plunge.

The latest downturn has pushed HYPE’s monthly losses to 38.36%.

Hyperliquid spent $644 million repurchasing HYPE, which accounted for 46% of all 2025 buybacks.

Hyperliquid is leading the token buyback in 2025, according to CoinGecko. The platform has allocated over $644.64 million in revenue to repurchase its HYPE tokens through its Assistance Fund, which represents 46% of all token buyback spending this year.

In fact, Hyperliquid’s buyback efforts are equivalent to the combined spending of the next nine largest buybacks.

HYPE Buybacks Overshadow Market

To date, at least 21.36 million HYPE tokens have been repurchased. This figure accounted for roughly 2.1% of the total supply. Monthly buybacks have averaged $65.50 million, fluctuating from $39.14 million in March to a peak of $110.62 million in August, with an average repurchase price of $30.18 per HYPE.

To put this into perspective, LayerZero ranks as the second largest token buyback, having spent $150 million in September to repurchase 5% of its ZRO supply, with an average price of $3.00. However, this was a one-off discretionary buyback, and CoinGecko expects Hyperliquid’s ongoing program to maintain its dominance.

Meanwhile, Pump.fun occupied the third spot as it spent $138.17 million on repurchases since July, averaging $40.47 million per month, and capturing 3% of its total supply. While Pump.fun’s average buyback price of $0.0046 places its repurchased tokens at a paper loss following the October 10 crypto crash, the program demonstrates a strategic approach to supply management.

Raydium, the Solana-based DEX, leads in token buyback-and-burn activity after spending $100.35 million since 2022. Other notable projects include Rollbit ($27.93 million), Bonk via Bonk.fun ($27.30 million), Tron’s Sun platform ($3.03 million), and exchange WOO ($1.68 million).

Overall, CoinGecko identified 28 projects implementing meaningful buybacks in 2025, amidst a growing trend in the industry as projects explore buybacks as a mechanism to return value to holders and incentivize long-term engagement.

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Token Buybacks Boom

Zooming out, token buybacks have surged to over $1.40 billion so far in 2025. The trend was largely fueled by Hyperliquid. On average, crypto projects have spent roughly $146 million per month repurchasing their tokens this year. A significant spike in September’s figures was linked to LayerZero’s one-off $150 million repurchase, though CoinGecko clarified that this announcement likely distorted month-to-month comparisons.

Excluding that, September’s total buyback spending stood at $168.45 million. Interestingly, the pace of buybacks has accelerated in the second half of 2025 as spending saw a jump of 85% month-on-month in July. As of mid-October, projects have already spent almost $89 million, putting the month on course to log a fourth straight period above the first-half average of over $99 million.