CoinDesk
Citrini Research — the firm whose February AI-bubble report triggered a brief but violent market selloff — has named Hyperliquid and its HYPE token a new "compelling" investment idea, citing the platform's rare combination of real cash flow and a systematic token buyback mechanism.
The report notes that Hyperliquid has generated $1.06 billion in annualized fees and roughly $220 billion in 30-day perpetual futures volume. Over 90% of those fees flow into the platform's Assistance Fund, which has purchased more than $2 billion of HYPE on the open market since January 2025 — a figure Citrini says accounted for nearly half of all token-buyback activity across the entire crypto sector last year.
Why it matters
Citrini's endorsement carries weight precisely because of its track record: its AI-bubble thesis moved markets in February, meaning its audience extends well beyond crypto-native readers into TradFi and macro funds. The firm's framing — "unlike the memetic majority of crypto (bitcoin included), HYPE generates legitimate cash flow" — positions Hyperliquid as a fundamentals-driven trade in a sector where most valuations rest on speculation alone.
The timing is also notable. The CFTC last month opened the door to regulated crypto perpetual futures products in the U.S., setting off a race among Coinbase, Kraken, and others to capture a market that already dominates global crypto trading volume. Hyperliquid currently holds the majority of on-chain derivatives volume, giving it a structural head start.
Market impact
HYPE has already been one of the strongest performers in crypto year-to-date, even as broader digital assets sold off. The Citrini endorsement adds a credible fundamental narrative to what has largely been a momentum trade.
Frequently asked questions
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How does Hyperliquid's token buyback mechanism actually work?
Over 90% of platform fees are redirected into the Assistance Fund, which systematically purchases HYPE on the open market. Since January 2025, cumulative buybacks have surpassed $2 billion, representing nearly half of all token-buyback activity across the crypto sector last year.
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What is the main risk to the HYPE investment thesis Citrini outlines?
The buyback model depends heavily on sustained derivatives trading volumes. A meaningful decline in perpetual futures activity would reduce fee generation and limit the Assistance Fund's capacity to purchase HYPE, directly pressuring the token's fundamental support.
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How does the CFTC's recent move on crypto perps affect Hyperliquid's position?
The CFTC last month opened the door to regulated crypto perpetual futures in the U.S., triggering a race among Coinbase and Kraken to enter the market. Hyperliquid already holds the dominant share of on-chain derivatives volume, giving it a structural head start as the U.S. market opens up.
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