Hyperliquid Rockets 10% to $63 – $1.16B Buybacks & Flippening Shake Binance!

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Hyperliquid Surges 10% as $1.16 Billion Buybacks Fuel <a href="https://jpyxx.com/hype-usd/">HYPE</a> Flippening Speculation

Hyperliquid (HYPE) saw a significant price increase, jumping almost 10% to surpass $63. This rise was likely fueled by a $1.16 billion buyback program, growing demand from exchange-traded funds (ETFs), and discussions about it potentially surpassing Binance in trading volume.

This action increased Hyperliquid’s total value to over $15 billion, making its token the 11th most valuable globally. Over the past week, HYPE has performed better than many of the leading cryptocurrencies.

Hyperliquid Buyback Engine Anchors the HYPE Bid

The Assistance Fund is key to Hyperliquid’s plan to repurchase HYPE tokens. Hyperliquid will use almost all of its trading fee revenue – exceeding $1.16 billion – for this buyback.

The recent price increase of HYPE isn’t mainly due to anticipation of an ETF, but rather to Hyperliquid’s system of buying back its own tokens. Since its launch, Hyperliquid has used almost all of its trading fee revenue – over $1.16 billion – to purchase HYPE tokens on the open market through its Assistance Fund, according to a report by WuBlockchain, referencing Forbes contributor Zennon Kapron.

The system directs the majority of trading fees from both perpetual and regular markets towards buying HYPE tokens. This process has helped to stabilize the token’s price during periods when tokens were released into circulation and is considered a key factor behind the recent price increase that traders have noticed.

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According to Bloomberg ETF analyst James Seyffart, the newly launched exchange-traded funds from 21Shares (THYP) and Bitwise (BHYP) have collectively gathered around $53 million in investments since their release in May.

Hyperliquid ETFs are still gaining popularity, with increasing trading volume and new investments. As of yesterday, a total of around $53 million has been invested in the two ETFs since their launch. We expect to have updated investment figures from today later tonight.

— James Seyffart (@JSeyff) May 21, 2026

These inflows are happening as more institutional investors are seeking exposure to HYPE through ETFs. According to Kapron, the system’s performance relies on trading volume, and a long-term decrease in trading activity could reduce its support level.

Analyst Floats a Binance Flippening Scenario

Blockchain expert Simon Dedic sees Hyperliquid as a potential disruptor to the way exchanges operate, not just a platform focused on price. He suggests it could even surpass Binance to become the leading exchange, one that’s fairer to users.

He believes the moment HYPE starts using BNB will demonstrate the crypto industry’s ability to overcome its current limitations, and that this shift could happen sooner than expected.

Dedic pointed out that Hyperliquid’s open and clear trading system sets it apart from Binance’s BNB. This idea fits into a larger discussion about how Hyperliquid is disrupting the established order of trading volume in the derivatives market.

Earlier this year, Hyperliquid saw approximately $2.6 trillion in trading volume, according to Artemis. This is almost double the $1.4 trillion recorded by Coinbase, indicating significantly higher activity on Hyperliquid.

This recent development has sparked a discussion about whether decentralized trading platforms are starting to compete with traditional exchanges in terms of size and impact.

As a researcher tracking exchange activity, I’ve been observing a significant shift in trading volume. My data currently shows Hyperliquid surpassing Coinbase – we’re seeing roughly $2.6 trillion in volume on Hyperliquid compared to $1.4 trillion on Coinbase. That’s almost double the volume, and what’s particularly interesting is that Hyperliquid is an on-chain exchange. The market is definitely starting to take notice of this growth.

Why Buybacks Worked for HYPE Where PUMP Stalled

The recent focus on HYPE buying back its own tokens is concerning because it mirrors the situation with Pump.fun (PUMP). Despite spending over $350 million on buybacks, Pump.fun’s value has dropped about 80% from its peak in September and is currently trading around $0.0018.

BeInCrypto recently covered issues with Pump.fun, noting that new token creation and large sales by major holders have countered the positive effects of buying pressure.

The key difference lies in how revenue is generated. Hyperliquid earns consistent income from trading fees, and these fees are substantial because they’re based on a large volume of trades from experienced users.

Pump.fun makes money when popular meme coins are trending, but its program to buy back its own tokens struggles when that excitement dies down.

As an analyst, what I’m really watching is whether the current market structure can hold up if we see another significant drop in crypto prices. Right now, several indicators – like revenue generated on the blockchain, money flowing into ETFs, and the potential for Ethereum to overtake Bitcoin – are all suggesting a positive trend. But the big question is whether that strength will last through a more challenging market period.

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2026-05-24 21:08