Hyperliquid – Will daily buybacks trigger HYPE’s breakout above $50?

Key Takeaways

Hyperliquid’s buyback program has crossed 30M HYPE tokens. Will it boost the altcoin’s recovery chances? 

Hyperliquid’s [HYPE] price has consolidated within the $36-$50 price range for over two months now after an explosive +400% rally in H1 2025. In fact, market watchers have projected that the altcoin could print a breakout above $50 amid bullish catalysts. 

In a recent Bloomberg interview, for instance, David Schamis, a VC partner at Atlas Merchant Capital, highlighted one of the positive catalysts. 

“The exchange (Hyperliquid) generates revenue and buys the token every day…A massive burn rate, unlike BTC or ETH.”

At the time, he was referring to the buyback program, with the same hitting over 30 million HYPE. This supply drop could help boost HYPE’s value. 

On 3 September, the exchange bought nearly 50k HYPE worth over $2 million or over 99% of the daily revenue. 

Source: ASXN

Will bulls clear the $50 hurdle?

Additionally, several wallet providers like Phantom, Rabby, and others have partnered with the DEX to allow their users to trade derivatives seamlessly. 

Besides, Hyperliquid’s “everything exchange” vision, like Coinbase, could be a major growth arc, according to some analysts. 

For trader Byzantine General, the altcoin is at a great buying level right now. He added that it would fly if the front of a breakout is above $50. 

“I bought a bunch of $HYPE again. It’s coiling very tight. This is gonna move fast when it breaks out.”

Source: X

Finally, over the past few days, the altcoin has consolidated above $40 following a 10% cool-off from its recent $50 peak. 

On the liquidation heatmap, key clusters of liquidity sat at $41.8 and $49.6, making the levels key targets in case of a liquidity hunt ahead of September’s Fed rate cut expectations. 

Source: CoinGlass

The bullish outlook was also evident on the spot markets. According to Coinglass, there were net outflows (red bars) on exchanges during HYPE’s pullback from $50. 

Simply put, users removed HYPE from exchanges during the correction, hinting at a “buy the dip” trend. 

Source: CoinGlass

The aforementioned accumulation spree during the price contraction and the aggressive buyback program could fuel a strong rally IF the broader market rebounds.