Key Points:
- HYPE has surged 40% in one month, backed by $96M in token buybacks.
- Leading in DEX perps volume and is challenging CEXs in BTC markets.
- The March JELLY incident exposed centralization risks, raising governance concerns.
Despite ending its points program last year, Hyperliquid (HYPE) has emerged as a dominant player in the decentralized perpetuals (perps) space, controlling 69.3% of all Decentralized Exchange (DEX) perps trading volume according to Dune, a crypto analytical platform. A points program is a reward system where users earn points for using a platform, like trading or referring others, and can later be eligible for token airdrops.
Moreover, according to Blockworks Research, HYPE consistently averages $6.4 billion in daily trading volume, over 50% of what leading Centralized Exchanges (CEXs) like Bybit and OKX reported.
What’s the HYPE about?
This surge in usage and performance has translated into significant momentum for the native HYPE token, which has rallied 40% over the past month according to CoinMarketCap.
A key factor behind this bullish price action is HYPE’s unique fee distribution model. Out of the $10.8 million in weekly trading fees generated, 93% flows into an “assistance fund” that buys back HYPE on the open market. Since February, this has amounted to roughly $96 million in cumulative buybacks, or around $1.4 million per day based on last month’s data.
HYPE’s total fees generated over 30 days ($61.34M) resulted in token buyback worth $57.05 million
In addition to dominating DEX volumes, HYPE is now competing with centralized exchanges in the Bitcoin perps market. According to Velo, a cross-exchange crypto data provider, Hyperliquid’s BTC perps open interest has surpassed Deribit & OKX, with over $2.66 billion in open positions.
Hyperliquid holds a 15.7% share of the perpetuals market, trailing far behind Bybit at 34.3% and Binance Futures at 50%, according to Hyperdash data, showcasing a huge difference in comparison to the top centralized exchanges (CEXs) at present, even though it has caught up with other CEXs.
Controversies
The JELLY incident on March 26th, 2025, severely damaged Hyperliquid’s credibility, exposing key weaknesses in its risk controls and decentralization claims. The platform suffered a $340M outflow, its Hyperliquidity Provider (HLP) vault value plunged by 64%, and the HYPE token dropped 10%. The forceful delisting of JELLY and arbitrary settlement decisions drew backlash, with critics comparing Hyperliquid’s response to that of a centralized exchange. Although the token later stabilized, trust in the platform’s governance and security protocols took a major hit.
HYPE Mentioned by Bloomberg
Despite recent controversy, HYPE’s one-month token performance has drawn interest from both traders and investors, even earning a mention on Bloomberg’s podcast. While on-chain metrics and the token’s distribution model suggest healthy momentum, it remains important to monitor for potential risks, especially in light of incidents like the JELLY exploit, as mentioned by Yunt Capital’s CEO:
