After preparing for new highs every time the majority of the crypto market struggled, Hyperliquid (HYPE) has finally entered a pullback. The regulation has divided investors into two camps. Some see it as an opportunity to buy at a bargain price. Others said the meeting was over.
According to another expertthe real answer is not in the price chart but in Hyperliquid’s underlying buyback model and catalysts are coming.
Buybacks Still Support HYPE
The expert explains that Hyperliquid remains the largest in the futures market, creating real trading capital that provides funding for buying HYPE. Since its launch, the protocol has spent more than $1 billion buying HYPE, and has withdrawn more than 40 million tokens.
However, there is an important catch. These purchases depend on business activity, meaning that the pressure to buy decreases when sales are slow. Quarterly sales have already dropped from $300 million to less than $200 million, although the HYPE is still going strong.
A New Helper May Arrive Soon This Year
The analyst said the next phase of growth could come from Hyperliquid which has just been approved for the second time.
Under this proposal, about 90% of the interest earned on the platform $ 6 billion + USDC reserves will be used to buy. HYPE. Estimates show that this could generate as much as $200 million in additional sales per year. This will begin as soon as the program begins in late fourth quarter.
Even so, investors should also look at the risks. The opening of monthly tokens will continue until 2027. Demand for ETFs has begun to cool. New redemptions are subject to higher interest rates. In addition, legal uncertainty regarding the protocol’s payment transactions still exists.
Instead of focusing on price movements, the analyst says investors should monitor USDC deposits, trading volume, protocol fees, and the release of a secondary trading system. These metrics, rather than short-term volatility, can determine whether Hyperliquid can sustain long-term momentum.
Demand for ETFs is down. HYPE ETFs enjoyed 16 consecutive days of inflows after launch but then recorded their first day of outflows in early June. This shows that demand driven by ETFs is not guaranteed.
The price of HYPE shares
On the other hand, the analyst said that he is not sure that the HYPE rally is over. Instead, they see the dip itself as a stress test before the second recycling program begins. Investors are expected to focus less on short-term price movements and more on USDC rates, trading volumes, purchasing activity, and institutional openings. Q4 is set to be a key period for the next big HYPE movement.
Currently, HYPE is trading at $63.43, down 2.5% in the last 24 hours. The token has recorded $556.2 million in daily trading. It is also the 9th-largest cryptocurrency by market capitalization, worth about $16 billion.
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