[Digital Today reporter Jinju Hong] Hyperliquid's native token HYPE has recently risen above $64, setting a record high. The market is focusing less on simple ETF inflows and more on the platform's distinctive redemption structure and sustained buying mechanisms. An analysis says token repurchases using trading fees, treasury strategies by listed companies and reinvestment of stablecoin management income are combining to drive HYPE higher.

On May 25, local time, blockchain outlet CoinPost reported that Zenon Kapron, founder of fintech research firm Kapronasia, pointed to Hyperliquid's ongoing internal buying structure as the key factor behind HYPE's strength. The market has focused on the impact of the first U.S. spot HYPE ETF listing, but Kapron assessed that ETFs alone are hard to use to explain the recent rise.

In fact, spot HYPE ETFs such as 21Shares' THYP and Bitwise's BHYP recorded combined inflows of $74.5 million, and assets under management were tallied at about $89 million. Kapron said the key force pushing up HYPE was structural buying pressure from the platform itself.

He first mentioned Hyperliquid's "assistance fund." The system uses most trading fees generated on the platform to buy HYPE again on the open market. By DefiLlama estimates, about 99 percent of Hyperliquid's perpetual futures and spot market fees flow into the fund.

Kapron said Hyperliquid has recorded cumulative revenue of more than $1.16 billion since launch, with a substantial portion used to buy HYPE. In particular, it was reported to have bought about $316.76 million worth of HYPE in the July to September 2025 period. As volume rises, fee income increases and the funds feed back into token purchases, he said, describing it as a virtuous cycle.

Another factor cited was buying by digital-asset treasury companies. U.S. Nasdaq-listed Hyperliquid Strategies adopted a financial strategy of holding HYPE as a core asset and is known to hold about 20 million HYPE. The company posted net profit of $152.5 million in the January to March period this year after reflecting valuation gains on HYPE. Kapron said such demand from listed companies could serve as a stable buying base in the market.

Income from managing USDC deposited on the platform is also a key variable. Hyperliquid has a structure that uses up to 90 percent of USDC income for HYPE buybacks and ecosystem incentives. With billions of dollars in USDC on deposit at all times, some assess that this income alone could create room for HYPE purchases worth hundreds of millions of dollars a year.

There are also warnings that the structure does not always lead to a bullish outcome. Kapron said that if trading volume declines due to a crypto market downturn, the scale of fee-based redemptions would also inevitably shrink. In rising markets, more trading and larger redemptions amplify gains, but in falling markets downside support could weaken, he said.

Bitwise Chief Investment Officer Matt Hougan also recently argued that HYPE remains undervalued. He focused on the point that about half of Hyperliquid trading volume currently comes from non-crypto assets such as commodities, S&P 500 futures and pre-IPO shares. He assessed that Hyperliquid could expand into a financial platform spanning multiple asset classes.

Ultimately, HYPE's recent record high is interpreted as the result of trading-fee-based redemption systems, treasury buying by listed companies and a structure that reinvests USDC income working at the same time, not just ETF expectations. The market is also citing the risk that if volume slows, the same mechanisms could turn into bearish factors.