Can Buybacks Stop the Token’s Downtrend?

Hyperliquid is accelerating its HYPE buybacks, but the token is still struggling to reverse its downward trend. The protocol reportedly removed another 21,290 HYPE from circulation in 24 hours, taking cumulative burns beyond 50.7 million tokens. With lifetime revenue reaching approximately $1.4 billion, the fundamentals remain significant. However, the price chart tells a different story. Can recurring buybacks finally trigger a HYPE price recovery?

Hyperliquid Burns $1.53 Million in HYPE as Supply Reduction Continues

Hyperliquid’s buyback mechanism continues to remove HYPE from circulation, linking protocol activity directly to token demand. According to the on-chain data, the protocol purchased approximately 21,290 HYPE at an average price of $72.31, spending around $1.53 million over 24 hours.

Cumulative burns have now reached approximately 50.77 million HYPE, equivalent to 5.08% of the token’s maximum supply. The reported figures also show lifetime revenue of approximately $1.4 billion and 30-day revenue of $68.82 million.

The Assistance Fund plays a central role in this mechanism, directing a large share of eligible protocol fees toward open-market HYPE purchases. This creates recurring demand, although the actual price impact depends on how those purchases compare with broader selling activity.

Can Hyperliquid’s Revenue Support a HYPE Price Reversal?

Hyperliquid’s revenue generation remains an important part of its investment case. The protocol has generated approximately $68.82 million over the past 30 days, providing a substantial source of funds for recurring token purchases.

The cumulative burn also represents a meaningful reduction relative to the maximum supply of one billion HYPE. The key question is whether protocol revenue and buybacks can generate enough sustained demand to absorb market selling.

HYPE Price Analysis: Descending Channel Keeps Bears in Control

HYPE chart shows the token trading inside a descending channel, with lower highs and lower lows defining its recent price action. The pattern indicates that sellers continue to control the short-term trend. Attempts to recover have repeatedly struggled near the channel’s upper boundary, while the lower trendline remains an important area to monitor for support.

A breakout above the descending resistance line would provide the first meaningful indication that selling pressure is weakening. A stronger move accompanied by rising trading volume could improve the chances of a trend reversal. On the other hand, another rejection near the upper boundary could keep HYPE inside the bearish structure and expose it to further downside.

Can Buybacks Turn the Tide?

Hyperliquid’s latest burn figures highlight the strength of its revenue-linked token reduction mechanism. However, the price action suggests that this demand has not yet been strong enough to reverse the prevailing downtrend.

Investors should watch protocol revenue, subsequent buyback activity and the descending channel breakout for confirmation. Until HYPE moves above its falling resistance trendline, recurring burns may support its long-term supply dynamics without delivering an immediate bullish reversal.

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