Citrini Highlights HYPE Token's Fee Revenue Potential

Citrini Research has shed light on a potential gem in the crypto market - Hyperliquid's HYPE token. The protocol's fee revenue and buyback program make it an attractive investment opportunity for traders.

According to DefiLlama data, Hyperliquid generates $1.06 billion in annualized fees, with over 90% of those fees going towards buying back HYPE tokens. This setup creates a direct link between the token's demand and trading volume on the platform.

The buyback structure is made possible by Hyperliquid's Assistance Fund, which uses most platform fees to purchase HYPE on the open market. Since January 2025, over $2 billion worth of HYPE has been bought back through this fund.

However, the increasing presence of regulated perpetual contracts in the market poses a challenge for Hyperliquid. U.S. regulators have recently approved KalshiEX's Bitcoin perpetual contract and issued guidance for 24/7 trading, while Coinbase is building its own route for perpetual crypto futures.