Citrini Research, the company that sparked mass fears of an AI bubble in February and triggered a brief market crash, has listed cryptocurrency exchange Hyperliquid and its token as a “compelling” new idea.
The research firm said in its report on Monday that “unlike most memetic cryptocurrencies (including bitcoin), HYPE generates legitimate cash flow. On top of that, there is even a buyback mechanism,” according to a shared extract on social media, which is controlled by a paid version of the report.
Hyperliquid is a blockchain-based exchange that allows users to trade perpetual futures on cryptocurrencies and other assets, such as commodities and private stocks. Its associated token, HYPE, has been one of the biggest performers this year, even as the rest of the digital asset sector was caught in a free fall.
The platform has generated $1.06 billion in annualized fees and around $220 billion in criminal volume in 30 days, according to DeFiLama Data
“More than 90% of the fees generated by the platform are redirected to the Assistance Fund [token buyback vehicle]which are then systematically used to purchase HYPE on the open market,” the Citrini Report says.
“The structure itself is attractive, but what is more surprising is the sheer scale of the Fund. Since its launch in January 2025, cumulative purchases have exceeded $2 billion,” the report adds, noting that buybacks accounted for nearly half of all token buyback activity across the crypto sector last year.
Hyperliquid has become the dominant player in decentralized perpetual futures trading and accounts for the majority of on-chain derivatives volume. HYPE’s investment thesis is increasingly tied to the underlying trading performance of the stock market; However, some analysts have argued that the buyback model relies heavily on sustained trading activity and could come under pressure if derivatives volumes decline. However, the company’s ability to generate substantial revenue sets it apart from much of the crypto sector, where many token valuations are simply the result of speculation.
Beyond the company’s business model, its dominance in global markets has helped fuel a broader push toward perpetual futures – which have historically been prohibited to US traders due to regulatory restrictions – in the US.
Last month, the Commodity and Futures Trading Commission (CFTC) opened the door for certain crypto perpetual futures products to be offered under US supervision. The move has sparked a race among exchanges, including Kraken and Coinbase (COIN), as they seek to capture demand in a market that accounts for the majority of global cryptocurrency trading activity. While Coinbase has already expanded its offering of felons in the US, Kraken is likely to launch its product later this month.
