Crypto trader Pentosh1 claims that $HYPE, the native token of the derivatives exchange Hyperliquid, is the "most profitable asset in a bear market," adding that the token's momentum could easily ensure its success in the next bull cycle as well.
The trader's argument is based on Hyperliquid's revenue distribution structure, under which nearly all trading fees generated by the platform's perpetual futures and spot markets are directed back to buying and burning $HYPE tokens on the open market, rather than remaining in the company's treasury.
This mechanism has already led to a significant portion of the supply being removed from circulation: since November 2024, Hyperliquid has destroyed 462 million $HYPE tokens worth approximately $1.27 billion, with about 99% of the protocol's fees funding the token buyback.
The scale of this burning program is directly dependent on the trading volume actually processed by Hyperliquid. Estimates suggest the exchange handles between 40% and 70% of all decentralized perpetual futures volume, and its cumulative trading volume to date has already reached trillions of dollars.
According to Defillama, the protocol's annual revenue currently ranges from $600 million to $950 million — this is the pool of fees from which the buyback mechanism draws funds, prior to accounting for any factors related to the AQAv2 upgrade.
AQAv2 Adds a Second Revenue Source
Regarding the reasons for $HYPE's successful momentum, Pentosh1 pointed to a specific short-term catalyst, namely the mechanism known as AQAv2 (short for Aligned Quote Asset v2), which will go live in 6 days and start generating revenue. The validator vote on AQAv2 reached the required quorum of 66.67% earlier this year, and according to the schedule, revenue accrual will begin on August 26, with the first payment arriving at the Hyperliquid Relief Fund on October 3.
Unlike the existing buyback program, which is funded solely by trading fees, AQAv2 directs approximately 90% of the reserve income earned on over $5 billion in $USDC held on the platform to the same Relief Fund.
Analyst estimates suggest this mechanism could increase the annual buyback volume by $135–160 million in addition to the mechanism that has already funded aggregate purchases of about $945 million. Coinbase, appointed in May as the official treasury custodian for Hyperliquid's $USDC, and Circle have committed to taking significant positions in $HYPE to facilitate the launch of this system.
Price Dynamics and the "Trump Effect"
At the time of Pentosh1's post, the $HYPE token was trading at around $73, not far from its all-time high of $76.67 set on June 16, 2026. The token has shown volatility in recent months, and its most recent sharp movement occurred after President Donald Trump told cryptocurrency company executives at a White House meeting on August 19 that regulators from the Commodity Futures Trading Commission (CFTC) under Chairman Michael Selig are "working to bring Hyperliquid into the US in full compliance with the law."
These statements led to a 20–25% increase in the $HYPE price over 24 hours, raised its market capitalization to the $18 billion mark, and made it the ninth largest cryptocurrency by this metric — despite Trump not announcing any official approval or timeline, and the Hyperliquid interface still blocking users from the US.
Finally, it's worth noting that the price rise is based on an important buyback milestone the platform passed earlier this year, when Hyperliquid's cumulative buyback volume first exceeded one billion dollars against a new all-time high for the token — which, in the view of Pentosh1 and other traders, indicates that the token-burning mechanism scales with trading activity and does not need new hype cycles to continue functioning.
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