Hyperliquid's HYPE Token Soars Amid Regulatory Progress and Upgrade Plans

Hyperliquid's HYPE token has been gaining traction in recent days, particularly after comments from President Donald Trump on August 19. The remarks from Trump pushed HYPE up 20% to 25%, lifting its market cap toward $18 billion and making it the ninth-largest cryptocurrency by that measure.

The token's price has since stabilized at around $77, despite no formal approval being announced for Hyperliquid's US entry. According to trader Pentosh1, the upcoming AQAv2 upgrade is a key reason behind HYPE's success in the bear market. The upgrade will direct 90% of reserve yield earned on over $5 billion in USDC toward the platform's Assistance Fund.

AQAv2 is set to add an estimated $135 million to $160 million in additional annual buyback pressure, according to analysts. This expansion of Hyperliquid's burn engine comes as its fee-driven buyback system has already removed $1.27 billion in HYPE and scales with trading volume.