Hyperliquid Activates Buyback Plan, Boosts Hype for HYPE Price
Hyperliquid has announced plans to launch a HYPE buyback and burn program through the AQAv2 activation, which could boost confidence in the token's price. This move may also contribute to demand and lower supply by burning tokens.
The buyback program is expected to use yield earned from USDC stablecoins, making it a significant development for HYPE investors. Despite being overbought, recent data suggests that sell pressure remains limited, and buying momentum has cooled down somewhat.
Wintermute, an algorithmic trading firm, has reduced its short exposure to HYPE from $211.5 million to $80.4 million, indicating a shift in sentiment towards the token's potential upside. Institutional inflows have also contributed to bullish optimism, with HYPE ETFs seeing $13.2 million in inflows on Monday and Tuesday.
As HYPE price continues to consolidate near its recent high, investors are waiting for signs of a pullback or further upside momentum. The token's price has been heavily discounted from its historic top achieved 12 months ago, with a 49% discount at press time.