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Citrini Research said Hyperliquid is a "compelling" investment, noting that more than 90% of platform fees are directed to its Assistance Fund and used to repurchase HYPE on the open market. According to the report, Hyperliquid's buybacks have accounted for nearly half of all crypto token buyback activity in 2025 by some measures.
Why it matters
Token buybacks are rare in crypto — most protocols return revenue to validators or treasuries, not to holders via open-market repurchases. Hyperliquid's model, which routes the bulk of platform fees to a fund whose mandate is HYPE repurchases, structurally reduces circulating supply whenever trading activity is healthy. Citrini's framing positions the venue as a cash-flow-driven asset whose capital return loop is closer to a small-cap equity buyback program than to typical DeFi tokenomics.
Market impact
Citrini added that the protocol still has significant room to gain market share, a key forward-looking beat: buyback magnitude scales with fee revenue, so volume growth flows directly into repurchase pressure on HYPE. The "nearly half of all crypto token buybacks" framing gives investors a relative-size anchor rather than a raw dollar figure, signaling that Hyperliquid is the dominant player in a still-narrow category.
Frequently asked questions
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Why is Hyperliquid's buyback model unusual in crypto?
Most crypto protocols route revenue to validators or treasuries. Hyperliquid directs more than 90% of platform fees into an Assistance Fund whose mandate is open-market HYPE repurchases, structurally reducing circulating supply when trading activity is healthy.
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How big are Hyperliquid's buybacks relative to the rest of crypto?
According to Citrini Research, Hyperliquid's repurchases accounted for nearly half of all crypto token buyback activity in 2025 by some measures, making it the dominant player in a still-narrow category.
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What did Citrini say about Hyperliquid's investment case?
Citrini Research called Hyperliquid a "compelling" investment and noted that the protocol still has significant room to gain market share, framing the buyback loop as a forward-looking catalyst tied to fee growth.
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How does Hyperliquid's market share outlook affect the buyback thesis?
Buyback magnitude scales with fee revenue, so any incremental market share gain flows directly into repurchase pressure on HYPE. Citrini's note that room to grow remains signals the buyback loop has not yet matured.
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Is Hyperliquid's buyback funded by protocol revenue or a treasury?
The repurchases are funded by platform fees, not a one-time treasury allocation. More than 90% of platform fees are routed into the Assistance Fund, which conducts the open-market HYPE buybacks.
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