Citrini Research, the company that sparked massive fears of an AI bubble in February and triggered a brief market collapse, has listed crypto exchange Hyperliquid and its token as a “compelling” new idea.
The research firm said in its report on Monday that “unlike the memetic majority of crypto (bitcoin included), HYPE generates legitimate cash flows. On top of that, there is even a buyback mechanism,” according to an excerpt shared on social media, which is monitored by a paid version of the report.
Hyperliquid is a blockchain-based exchange that allows users to trade perpetual futures contracts of crypto and other assets, such as commodities and private stocks. Its associated token, HYPE, was one of the best performers this year, even as the rest of the digital asset sector was in freefall.
The platform generated $1.06 billion in annualized fees and approximately $220 billion in 30-day trading volume, according to data from DeFiLama.
“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 states.
“The structure itself is attractive, but what is more astonishing is the scale of the Fund. Since its launch in January 2025, cumulative purchases have exceeded $2 billion,” the report adds, noting that repurchase accounted for almost half of all token repurchase activity in the crypto sector last year.
Hyperliquid has become the dominant player in decentralized perpetual futures trading, accounting for the majority of on-chain derivatives volume. HYPE’s investment thesis is increasingly tied to the underlying business 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. Nonetheless, 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 — historically off-limits to U.S. traders due to regulatory constraints — in the United States.
The Commodity and Futures Trading Commission (CFTC) last month opened the door to offering some crypto perpetual futures products under U.S. oversight. The move sparked a race between exchanges, including Kraken and Coinbase (COIN), seeking to capture demand for a market that accounts for the majority of global crypto trading activity. While Coinbase has already expanded its offerings in the United States, Kraken will likely launch its product later this month.
