HYPE holds near $73 as AQAv2 burn engine nears launch

HYPE, the native token of the Hyperliquid derivatives exchange, is holding near $73, within reach of its $76.67 all-time high set June 16.

Trader Pentosh1 argues the token is "the best performing asset in the bear market" and that its revenue-sharing structure, which routes nearly all trading fees into buying and burning HYPE on the open market, could carry it through the next bull cycle.

Hyperliquid has burned 462 million HYPE worth roughly $1.27 billion since November 2024, with about 99 percent of protocol fees funding the buybacks, according to DefiLlama data. The exchange handles an estimated 40 percent to 70 percent of decentralized perpetual futures volume, and annualized protocol revenue sits between $600 million and $950 million.

The AQAv2 upgrade, short for Aligned Quote Asset v2, begins accruing yield on August 26, with the first payment landing in Hyperliquid's Assistance Fund on October 3. Analysts estimate the mechanism could add $135 million to $160 million in additional annual buyback pressure on top of an engine that has already funded roughly $945 million in cumulative purchases.

AQAv2 Adds a Second Revenue Stream

Unlike the existing buyback program, which draws only from trading fees, AQAv2 directs roughly 90 percent of the reserve yield earned on the more than $5 billion in USDC held on the platform into the same Assistance Fund. A validator vote cleared the required 66.67 percent quorum earlier this year. Coinbase, designated as Hyperliquid's official USDC treasury deployer in May, and Circle have both committed to staking sizable HYPE positions to help activate the framework.

Trump Effect and the US Path

The token's sharpest recent move came after President Donald Trump told crypto executives at a White House meeting on August 19 that Commodity Futures Trading Commission Chairman Michael Selig was "working to bring Hyperliquid into the United States in a fully compliant and legal fashion." The remarks sent HYPE up 20 percent to 25 percent in 24 hours, pushed its market capitalization toward $18 billion, and made it the ninth-largest cryptocurrency by that measure, even though Hyperliquid's interface still blocks US users.

A legal US pathway would matter beyond sentiment. American traders represent the deepest derivatives market in the world, and onshore access could channel new volume and fees into the Hyperliquid ecosystem. Resistance persists, however: CME Group and NYSE parent ICE have reportedly lobbied for tighter scrutiny of the platform, citing manipulation and sanctions exposure concerns. The CFTC convenes its first-ever Innovation Advisory Committee meeting in Washington on August 20, with an agenda covering crypto assets, artificial intelligence, and prediction markets.

Prediction markets have turned more optimistic on the token's trajectory. The odds of HYPE reaching $100 by the end of 2026 climbed from 16 percent to 42.5 percent in the past week, according to Vera data, while August fee revenue rose 31 percent year over year. Whether Selig offers concrete terms or broad principles at Thursday's committee meeting could shape the next leg of the HYPE price outlook.

This article is for informational purposes only and does not constitute investment advice.