Buybacks and Demand Drive HYPE to $51—But Can It Hold?

Hyperliquid’s native token, HYPE, hit an all-time high of $51.05 on August 27, marking an 8% increase over the previous 24 hours, according to data from CryptoSlate and CoinDesk. This surge follows a period of significant trading activity and a robust buyback mechanism. DefiLlama reported that Hyperliquid recorded over $357 billion in derivatives volume for August, a notable jump from $319 billion in July and a nearly tenfold increase compared to the same period last year. Spot trading volumes also reached a record $3 billion for the week ending August 24, as reported by Blockworks.

The token’s rally has been fueled in part by Hyperliquid’s automated buyback strategy. The protocol’s Assistance Fund has been steadily repurchasing HYPE tokens since January, expanding its holdings from 3 million to 29.8 million tokens, now valued at over $1.5 billion. These buybacks have contributed to sustained demand and reduced circulating supply, reinforcing upward pressure on HYPE’s price. In addition, the protocol generated $105 million in trading fees during August, the highest amount this year, per DefiLlama data.

Analysts from ByteTree have described Hyperliquid as one of the most compelling protocols in the DeFi space, citing its strong fundamentals and record-breaking fee generation. They also highlighted its dominant market position, noting that Hyperliquid now processes more derivatives volume than several major centralized exchanges. The protocol's ability to handle 100,000 orders per second and its custom consensus mechanism, HyperBFT, have positioned it as a high-performance Layer 1 blockchain optimized for on-chain financial applications.

Despite the bullish fundamentals, analysts have also raised concerns about the token’s valuation. HYPE currently trades at a fully diluted valuation (FDV) of over $50 billion, with only about a third of the supply in circulation and a market capitalization of $16.8 billion. Scheduled token unlocks starting in November could introduce selling pressure, potentially testing the strength of demand, according to the same report.

Meanwhile, Cold Wallet’s North Star rank continues to gain attention as a symbol of leadership and influence within the cryptocurrency community. The highest rank in the platform’s system is awarded to early contributors who helped shape the project before it gained broader recognition. Users with North Star status may be granted governance input, platform advantages, and embedded recognition, according to the project's roadmap. Cold Wallet has raised $6.37 million to date and is currently in stage 17 of its presale, with a coin price of $0.00998 per CWT.

Source: [1] Hyperliquid Price: HYPE Live Price Chart, Market Cap & ... (https://www.coingecko.com/en/coins/hyperliquid) [2] Hyperliquid Price News: HYPE Surges 8% to Record High ... (https://www.coindesk.com/markets/2025/08/27/hyperliquid-s-hype-hits-record-high-above-usd50-on-trading-boom-token-buybacks) [3] Hyperliquid faces whale manipulation claims as HYPE ... (https://cryptoslate.com/hyperliquid-faces-whale-manipulation-claims-as-hype-reaches-new-all-time-high/) [4] Cold Wallet's North Star Rank Establishes Authority ... (https://intellectia.ai/news/crypto/cold-wallets-north-star-rank-turns-early-action-into-authority-outshining-doges-500m-whale-buys--trxs-price-rally) [5] Dogecoin Whales, Tron Rally, and Cold Wallet's $6.37M ... (https://crypto-economy.com/dogecoins-500m-whale-surge-trons-rally-but-cold-wallets-6-37m-presale-steals-the-spotlight/)