HYPE Token Surges to Record High on Buybacks, but Binance Erosion Looms

Hyperliquid's native token HYPE has reached an all-time high of $86, driven by large-scale buybacks. These buybacks are funded by trading fees, with over $400 million spent so far.

Alice Liu, head of research at CoinMarketCap, attributes the rise in part to sustained buybacks that have supported HYPE's price.

Liu notes that an increase in network transactions does not directly lead to a rise in the token's price. Instead, continued trading activity and fee revenue are necessary to support these buybacks.

The growth of Binance's perpetual futures market tied to traditional finance is seen as a risk factor for Hyperliquid's revenue structure. If Binance absorbs more related trading volume, it may erode Hyperliquid's ability to maintain its fee income and capacity to buy HYPE tokens.