Hyperliquid stands out for generating cash flow and having a token buyback mechanism
By Aoyon Ashraf, Helene Braun|Edited by Stephen Alpher Jun 8, 2026, 6:41 p.m. 2 min readMake preferred on Citrini's insights (Getty images)Key Points:
- Citrini Research, which played a role in igniting February’s AI market panic, has highlighted Hyperliquid and its HYPE token as a notable investment opportunity.
- The decentralized exchange Hyperliquid has reportedly generated approximately $1.06 billion in annual fees, with over 90% of these fees directed to a buyback fund that has acquired more than $2 billion of HYPE since January 2025.
- The valuation of HYPE is increasingly linked to Hyperliquid’s trading activity and revenue, especially as U.S. regulators like the CFTC begin to permit crypto perpetual futures products, prompting major exchanges such as Coinbase and Kraken to enter this space.
The research firm Citrini, which was influential in triggering a significant AI bubble scare in February, has now identified the crypto exchange Hyperliquid along with its token as a "compelling" investment.
In a report released on Monday, Citrini stated, "unlike the majority of crypto assets, including Bitcoin, HYPE produces real cash flow. Additionally, there is a buyback mechanism in place," as noted in a social media excerpt from the report, which is behind a paywall.
Hyperliquid operates as a blockchain-based exchange facilitating the trading of perpetual futures for cryptocurrencies and other assets, including commodities and private stocks. This year, HYPE has shown substantial performance, even as the broader digital asset market faced declines.
The platform has achieved $1.06 billion in annualized fees and approximately $220 billion in perpetual trading volume over the past 30 days, based on data from DeFiLama.
According to the Citrini Report, "Over 90% of the fees generated are funneled into the Assistance Fund [the token buyback initiative], which systematically acquires HYPE from the open market."
"The structure is appealing, but the scale of the Fund is truly remarkable. Since its inception in January 2025, total purchases have exceeded $2 billion," the report further noted, indicating that these buybacks constituted nearly half of all token buybacks in the crypto sector last year.
Hyperliquid has established itself as a key player in decentralized perpetual futures trading, capturing a significant share of on-chain derivatives volume. While HYPE’s investment potential is increasingly linked to the exchange's operational success, some analysts caution that the buyback strategy is heavily dependent on ongoing trading activity and may face challenges if derivative volumes decline. Nonetheless, the platform's ability to generate substantial revenue distinguishes it from much of the crypto market, which often relies on speculation for token valuations.
Moreover, Hyperliquid's leading position in global markets has contributed to a wider movement towards perpetual futures, a market traditionally restricted for U.S. traders due to regulatory issues.
Last month, the Commodity Futures Trading Commission (CFTC) began allowing certain crypto perpetual futures to be traded under U.S. regulations. This development has led to a competitive rush among exchanges, including Kraken and Coinbase, to meet the demand in a market that constitutes the majority of global crypto trading. Coinbase has expanded its perpetual offerings in the U.S., while Kraken is expected to launch its product later this month.
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