Hyperliquid's Buybacks Fuel HYPE's Record Surge—But Will Upcoming Unlocks Derail Momentum?
- Hyperliquid’s HYPE token surged to an all-time high above $50, driven by record $357B derivatives volume in August. - The protocol’s buyback fund grew to $1.5B, reducing supply and boosting demand through automated token repurchases. - Analysts praise HYPE’s strong fundamentals but warn of valuation risks due to a $50B FDV and upcoming unlocks in November. - Emerging projects like MAGAX (meme-to-earn model) and Dogecoin’s 15% weekly gain highlight shifting crypto market dynamics.
Hyperliquid’s native token, HYPE, reached an all-time high above $50 on August 27, surging approximately 8% in the past 24 hours. The token’s rally was driven by record-breaking trading activity on the decentralized exchange, which processed over $357 billion in derivatives volume in August alone. This marked a significant increase from $319 billion in July and nearly ten times the volume recorded in August 2024. Spot trading volumes also hit a new high, exceeding $3 billion for the week ending August 24. The elevated activity generated $105 million in trading fees for Hyperliquid in August, the highest of the year, per DefiLlama data. A substantial portion of these earnings is funneled into the protocol’s Assistance Fund, which executes automated buybacks of HYPE tokens on the open market, reducing circulating supply and fueling demand. The fund’s holdings have grown from 3 million tokens to 29.8 million since its launch in January, valued at over $1.5 billion. Analysts at ByteTree highlighted Hyperliquid as one of the “most compelling protocols in DeFi,” noting its strong fundamentals, record-breaking fee generation, and dominant market share. Despite these positive indicators, the report also flagged concerns around valuation. HYPE trades at a fully diluted valuation (FDV) of over $50 billion, with a current market capitalization of approximately $16.8 billion. With only a third of its total supply in circulation, the token could face downward pressure from scheduled unlocks starting in November. Meanwhile, the broader crypto market saw Dogecoin (DOGE) and Cardano (ADA) remain in the spotlight. DOGE’s whale activity and renewed interest pushed it up 15% this week, with on-chain data showing over 40,000 daily active transactions. The token’s market capitalization now exceeds $20 billion, reaffirming its position as one of the most prominent meme coins. Cardano, on the other hand, maintained its value above $0.50, bolstered by its expanding DeFi ecosystem and ongoing smart contract upgrades. With over 1,300 decentralized applications in development, ADA has become a favored long-term investment among developers and investors. Despite their gains, DOGE and ADA were overshadowed by emerging projects. Hyperliquid’s impressive performance in August highlights the growing influence of DeFi protocols in the crypto space. The protocol’s proprietary HyperBFT consensus algorithm and high throughput—supporting up to 100,000 orders per second—have made it a leader in on-chain perpetual trading. The token’s rally was further supported by institutional interest, as digital asset custodian BitGo recently added support for the HyperEVM network, facilitating institutional access to HYPE and related applications. Analysts caution that while Hyperliquid’s fundamentals remain strong, the broader market remains volatile, and valuation concerns persist. The upcoming token unlocks could introduce selling pressure, testing the resilience of current demand. Investors are advised to closely monitor on-chain activity and market sentiment in the coming months. Source:

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP News Today: Gumi Bets Big on XRP for Blockchain Future, Diversifying Beyond Bitcoin
- Japanese gaming firm Gumi allocates ¥2.5B to buy XRP (Ripple's token) for blockchain strategy, complementing prior ¥1B Bitcoin investment. - The move aligns with SBI Holdings (major shareholder) and Ripple's joint blockchain payment initiatives, including RLUSD stablecoin deployment in Japan. - XRP's utility in cross-border remittances and liquidity solutions drives institutional adoption, with Gumi reporting holdings quarterly for transparency. - Despite short-term XRP price volatility, Gumi emphasizes

The Trump Family's Crypto Bet: Strategic Implications of Eric Trump's Involvement in Metaplanet
- Eric Trump joins Metaplanet as strategic advisor, signaling institutional Bitcoin adoption amid Japan's regulatory reforms. - Japan's 2025 FIEA reforms and tax cuts (20% capital gains) position Bitcoin as a regulated reserve asset, tripling crypto AUM in two years. - Metaplanet's 210,000 BTC target by 2027 highlights Bitcoin's role in hedging inflation, with 7-12% yield outperforming traditional assets. - U.S. regulatory clarity (GENIUS Act, CLARITY Act) and global policy convergence reduce jurisdictiona

Pudgy Party: A Blueprint for Mainstream Web3 Gaming Adoption
- Pudgy Penguins and Mythical Games' Pudgy Party redefines Web3 gaming by simplifying blockchain onboarding via custodial wallets, targeting 100M users. - The game's dual-tier NFT model (NAT/LE) merges meme culture with functional in-game tools, reducing speculative behavior while enhancing accessibility. - Community-driven features like Soulbound Tokens and viral events foster engagement, bridging crypto-native and traditional audiences through shared cultural identity. - PENGU token's 216% surge and $13.

Strategic Diversification in a Volatile Crypto Market: The Rise of Tokenized Bitcoin Mining and Bitfrac’s Presale Model
- Tokenized Bitcoin mining offers passive income and risk mitigation, blending physical infrastructure with blockchain scalability. - Bitfrac's $5.94M presale model enables fractional mining ownership via BFT tokens, distributing profits through smart contracts. - Solana's high-speed network (65k TPS) and institutional adoption support tokenized mining's growth, with RWA tokenization expanding from $5B to $24B. - The $13.5B Bitcoin mining market's 45% renewable energy adoption enhances ESG appeal, position

Trending news
MoreCrypto prices
More








