Here’s the Hyperliquid (HYPE) Price if Buybacks Keep Outpacing Pump.fun by 6x

Hyperliquid (HYPE) users are currently discussing a significant proposal, HIP-5, which aims to alter the platform's revenue distribution. The proposal suggests allocating a portion of daily fees to support new ecosystem projects, such as PURR and Kinetiq, rather than solely focusing on buying back HYPE tokens.

Currently, nearly all revenue generated by Hyperliquid is used for HYPE token buybacks. If HIP-5 is approved, this buyback activity would decrease, potentially impacting the token's price strength in the short term. Proponents of the proposal argue that it will foster a more robust and diversified Hyperliquid economy, while opponents maintain that the buyback mechanism should remain exclusively dedicated to HYPE.

Hyperliquid has established itself as a preferred venue for substantial futures positions. This was recently highlighted when a single trader initiated a leveraged short position valued at $136 million across Bitcoin (BTC) and XRP. Such large-scale transactions are indicative of platforms offering significant liquidity and reliable execution.

In parallel, decentralized perpetual exchanges are gaining traction and moving towards mainstream adoption, with Hyperliquid remaining at the forefront of this trend. Despite increasing competition, Hyperliquid's current lead reinforces the importance of HYPE as the foundational token for a critical and actively utilized market.

HYPE Buybacks Drive Investor Interest

While debates surrounding governance and market share continue, the buyback leaderboard remains a key source of excitement for investors. Hyperliquid has invested approximately $916 million in HYPE token buybacks, a figure that significantly surpasses the buyback volume of Pump.fun, which stands at over six times less.

This substantial difference in buyback activity plays a crucial role in tightening the token's supply. The protocol consistently utilizes its trading revenue to repurchase HYPE tokens, thereby reducing the circulating supply.

A decrease in supply, coupled with sustained or increasing demand, naturally creates upward price pressure. This underlying economic mechanism distinguishes HYPE from speculative meme assets, as it is supported by a functional and revenue-generating engine.

Potential Price Trajectory for Hyperliquid

The HYPE price is currently trading around $37.89. The current market setup does not indicate an end to its upward trend. If Hyperliquid continues to attract futures volume and maintain its aggressive buyback pace, a short-term price target of $50 appears achievable.

Furthermore, as Hyperliquid solidifies its position in a market increasingly favoring decentralized trading, a price point in the triple digits could become a realistic prospect.

As long as Hyperliquid continues to capture market liquidity and aggressively buy back its supply, the passage of time is likely to be a significant factor in driving value for HYPE holders.