HYPE rebounded more than 10% from Sunday lows after Citrini Research placed Hyperliquid under watch, citing the protocol's cash flow generation and buyback mechanism as compelling factors.
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Hyperliquid's HYPE jumps over 10% as Citrini puts token on watch
HYPE rebounded more than 10% from Sunday lows after Citrini Research placed Hyperliquid under watch, citing the protocol's cash flow generation and buyback mechanism as compelling factors.
Hyperliquid's native token rose to around $61.54 as of Monday's Asian session, recovering from a selloff last week that dragged the token below $55. The move came as Citrini Research added Hyperliquid to its watch list, highlighting the decentralized exchange's ability to generate sustainable revenue through its perpetual futures trading platform.
"Hyperliquid's cash flow profile and token buyback mechanism create a structure that few DeFi protocols can match," Citrini said in its note. The research firm pointed to the protocol's fee generation from perpetual swaps trading as a key differentiator, with Hyperliquid consistently ranking among the top revenue-generating protocols across all chains.
The rebound follows a volatile period for HYPE, which hit a record high near $76 earlier this month before retreating amid a broader crypto market pullback. The token remains roughly 19% below that peak. Trading volumes picked up as retail chatter on Stocktwits surged more than 1,600% over the past seven days, with sentiment holding in "extremely bullish" territory.
The Citrini endorsement adds to a growing list of institutional nods for Hyperliquid. Grayscale launched its Hyperliquid Staking ETF (HYPG) last month with a 0.29% expense ratio, joining similar products from Bitwise and 21Shares. The three U.S.-listed Hyperliquid ETFs have drawn investor interest, though the funds saw their first net outflows of $2.9 million on Friday, according to data from The Block.
The token's ability to sustain its recovery hinges on whether Hyperliquid can maintain its fee revenue as competition in the perpetuals DEX space intensifies. Rivals including dYdX on Ethereum and Drift on Solana are vying for market share. Hyperliquid's buyback program, which uses a portion of protocol fees to repurchase HYPE from the open market, provides a structural demand driver that Citrini flagged as a potential catalyst for further price appreciation.
This article is for informational purposes only and does not constitute investment advice.
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