Hyperliquid’s HYPE token has staged a powerful rebound, rising roughly 47% over the past two weeks and decisively outperforming both Bitcoin and Ethereum.
This surge stands out even more because it is happening during a broader market drawdown rather than a euphoric risk-on phase.
Bitcoin’s price is still down more than 20% over the last month, while Ethereum’s price has fallen by over 30% in the same period.
Against that backdrop, HYPE’s strength signals something more structural than a simple relief rally.
At the time of writing, HYPE trades around the $32–33 zone, holding firm after a sharp recovery from recent lows.
This price action reflects a market that is consolidating at higher levels rather than rolling over.
The main reasons Hyperliquid’s price is soaring are the DEX’s explosive revenue and usage growth, as well as ongoing token buybacks and token burns.
Hyperliquid’s revenue, usage, and real demand
One of the clearest drivers behind HYPE’s outperformance is Hyperliquid’s explosive revenue growth.
According to DeFiLlama data, the protocol recently generated over $5.5 million in fees in a single 24-hour period, briefly surpassing Ethereum in daily revenue.
That comparison matters because Ethereum remains the benchmark for on-chain economic activity.
Hyperliquid’s revenue is not theoretical or forward-looking, but directly tied to active trading demand.
In addition, its daily perpetual trading volumes have climbed above $5 billion, giving Hyperliquid more than 30% market share in decentralised perps.
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This level of usage indicates that traders are consistently choosing Hyperliquid as their venue of choice.
Volatility across the broader crypto market has actually amplified this trend rather than weakened it.
When Bitcoin and Ethereum chop or decline, derivatives trading, hedging, and speculation tend to increase.
Hyperliquid is structurally designed to monetise exactly that kind of market environment.
As volatility rises, fee generation accelerates, reinforcing a feedback loop between usage and revenue.
Hyperliquid token buybacks and burns
Revenue alone does not explain why HYPE itself has been outperforming.
A significant portion of Hyperliquid’s fees is used for token buybacks and burns.
Over the past month, more than two million HYPE tokens have been removed from circulation.
This creates persistent buy pressure that directly links protocol success to token value.
While HYPE does have a large maximum supply, the circulating supply remains relatively constrained.
With roughly 238 million tokens circulating out of a one billion maximum, marginal demand still has an outsized impact.
This dynamic helps explain why price can move aggressively even during broader market weakness.
Investors are not just pricing in future growth, but responding to ongoing supply reduction.
That combination of cash flow and token sinks is rare at scale in crypto.
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