Citrini Research, known for sparking February's AI-driven market scare, has named Hyperliquid and its HYPE token as a compelling investment. Hyperliquid, a decentralized perpetual futures exchange, has generated $1.06 billion in annualized fees, with over 90% funneled into a buyback fund that has purchased over $2 billion of HYPE since January 2025. The platform's dominance in on-chain derivatives volume ties HYPE's value to exchange performance. However, concerns exist that the buyback model relies on sustained trading activity. Meanwhile, the CFTC has opened the door for crypto perpetual futures in the U.S., prompting exchanges like Coinbase and Kraken to enter the market, which could impact Hyperliquid's competitive position.

Key facts

• Hyperliquid generates $1.06B annualized fees, 90%+ used for token buybacks.
• Buyback fund has purchased over $2B of HYPE since Jan 2025.
• CFTC opened door for crypto perpetual futures in the U.S.
• Coinbase and Kraken are racing to offer U.S. perpetual products.

KeyAudit data perspective