Why Is HYPE Coin Rising? An Analysis of Buybacks, Short Squeezes, and the $2.6 Billion RWA

Bittime - HYPE coin reach all-time high (ATH) It was just $64.32 on May 25, 2026. HYPE's current price is $63.21 with a market cap of $16.06 billion, ranking it at #10 globally. In the last 24 hours, trading volume reached $1.08 billion.

Why is HYPE coin rising so aggressively?

There are three main factors: the Assistance Fund's buyback mechanism, a short squeeze forcing short sellers out, and the growth of RWA trading on Hyperliquid, which reached $2.6 billion in open interest. Here's an analysis of HYPE coin.

Key Points

• HYPE coin prints ATH $64.32– Market cap $16.06M. Price up from $3.20 ATL (up 1,875%).
• $1.16M buyback boosts price– The Assistance Fund buys HYPE per block. Q3 2025: $316.76M buyback.
• Short squeeze dan RWA $2,6M– Short sellers were forced to close their positions. RWA trading doubled from a month ago.

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HYPE Price and Latest Market Data

HYPE to USDT via Bittime Market

Price: $63,21

24 hour changes: +1,94%

Market cap: $16.06 billion

Fully diluted valuation (FDV): $60.78 billion

Volume 24 jam:$1.08 billion

Circulating supply:254.07 million HYPE

Total supply:954.68 million HYPE

Max supply: 961.67 million HYPE

All-time high: $64.32 (May 25, 2026)

All-time low:$3.20 (November 2024) – up 1,875%

Hyperliquid token is currently trading at an all-time high, rallying despite concerns about the future token unlock.

Read also:Convert 1 HYPE to IDR

Reason for HYPE Coin's Rise: Buyback Assistance Fund

The most important factor behind the rise HYPE crypto is a buyback mechanism through the Assistance Fund.

This fund receives approximately 99% of Hyperliquid's perpetual and spot trading fees, then uses it to purchase HYPE on the open market — block by block, regardless of market conditions.

There is no governance vote or board decision that can stop this process.

Buybacks are a direct function of the protocol's revenue model.

The scale of Assistance Fund purchases far outpaces ETFs as a price driver.

Bitwise launched the first US spot Hyperliquid ETF in May, attracting tens of millions in its opening week. However, the Assistance Fund itself deployed $316.76 million in buybacks during Q3 2025 alone.

Quarterly Buyback Hype Data

Q3 2025:$316.76 million

Q4 2025:$255.05 million

Q1 2026: $192.25 million

Since its launch, HYPE's total buybacks have exceeded $1.16 billion.

Two additional streams bolster the fund's activity. Hyperliquid Strategies, traded on the Nasdaq under the ticker PURR, holds approximately 20 million HYPE tokens and reported net income of $152.5 million last quarter.

Additionally, up to 90% of the reserve yield earned from USDC on the platform also flows back into buybacks and ecosystem incentives.

Short Squeeze Percepat Rally HYPE

The reason HYPE coin's surge also stems from short-seller activity. Many traders positioned themselves for a decline due to concerns about token unlocking.

As a result, the funding rate becomes negative and short positions become overcrowded.

When HYPE broke through the $50 level, this condition triggered a massive short squeeze.

Short sellers were forced to buy back HYPE to cover their positions, which actually pushed the price higher. Open interest also increased significantly during this breakout phase.

The near-vertical rise in the latest session was largely due to the liquidation of trapped short positions.

RWA Trading Hyperliquid Grows to $2.6 Billion

In addition to buybacks and short squeezes, the growth of RWA trading on Hyperliquid is also a driving force.

According to Hyperliquid's official announcement on X, RWA trading open interest reached an ATH of $2.6 billion — double what it was two months ago.

Demand for 24/7, on-chain access to real-world assets continues to grow. This demonstrates that Hyperliquid is not only a perpetual futures platform, but also a significant RWA trading hub.

Hyperliquid also has a full-fledged Ethereum Virtual Machine (EVM) that allows users and developers to access and build applications using smart contracts.

Risk: Dependence on Volume and Unlock Tokens

Even though HYPE coin is rising aggressively, there are risks that need to be considered.

HYPE buybacks have been steadily declining. From $316.76 million in Q3 2025 to $192.25 million in Q1 2026—a decline of approximately 40% despite HYPE's price continuing to set new records. This suggests the price and the buyback engine are moving in opposite directions.

In a bearish market scenario, perpetual futures volumes will contract sharply.

Buybacks will also contract, and price support will disappear just when HYPE holders need buyers most.

Additionally, there are still millions of HYPE tokens that will be unlocked over time.

The FDV of $60.78 billion, which is significantly larger than the market cap of $16.06 billion, indicates the potential for significant dilution in the future.

Conclusion

Why is HYPE coin rising? A combination of the Assistance Fund buyback mechanism ($1.16M+ total), a short squeeze forcing out short sellers, and RWA trading growth to $2.6 billion in open interest were the main drivers of HYPE's rally to an all-time high of $64.32.

HYPE's current price is $63.21 with a market cap of $16.06 billion. Hyperliquid HYPE has risen 1,875% from its ATL of $3.20.

However, HYPE coin analysis must also consider risks: declining buybacks per quarter, dependence on perpetual futures volume, and potential dilution from future token unlocks.

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FAQ

How much is HYPE worth today?

~$63.21 with a market cap of $16.06 billion. New ATH: $64.32 (May 25, 2026).

Why is HYPE coin rising?

Three factors: the Assistance Fund buyback ($1.16M+), the short squeeze, and the $2.6M RWA trading.

What is the Assistance Fund?

The fund receives 99% of Hyperliquid's trading fees and is used to purchase HYPE on the open market every block.

How much is HYPE's total buyback?

Since its launch, total buybacks have exceeded $1.16 billion.

What is a short squeeze?

Overcrowded short positions were forced to close as prices rose, triggering further gains.