Hyperliquid’s native token, HYPE, is once again the focus of intense market speculation. After a period of heavy consolidation, the decentralized derivatives exchange (DEX) has strengthened its buyback initiative, fueling hopes among traders that the token could break past the critical $50 barrier in the near term.

The question on many investors’ minds is whether the program’s aggressive supply reduction, combined with renewed retail and institutional interest, will be enough to spark a fresh bullish wave.

A Market Cooling Off After a Hot Start

In the first half of 2025, HYPE staged one of the strongest rallies across the altcoin market, rising more than 400%. However, since reaching its peak earlier this summer, the token has entered a consolidation phase, largely trading between $36 and $50 for over two months.

This range-bound behavior has frustrated momentum traders but provided a potential opportunity for long-term investors. For many, the price correction has been viewed less as weakness and more as a period of accumulation.

Data from Coinglass supports this narrative. During recent pullbacks, the exchange recorded significant outflows, signaling that many users were moving their HYPE holdings off exchanges rather than selling. This “buy the dip” trend highlights growing conviction among holders.

A Buyback Program Unlike Any Other

One of the key catalysts behind renewed bullish speculation is Hyperliquid’s ongoing buyback program. The exchange has committed to using its revenue to purchase HYPE tokens on the open market, reducing circulating supply and potentially strengthening price resilience.

According to figures shared earlier this week, Hyperliquid has already bought back more than 30 million tokens through this initiative. On September 3, for example, the exchange acquired nearly 50,000 HYPE worth over $2 million — an amount equivalent to 99% of its daily revenue.

In a Bloomberg interview, David Schamis, a venture capital partner at Atlas Merchant Capital, praised the strategy, describing it as “a massive burn rate, unlike BTC or ETH.” His comments have since circulated widely, adding to the perception that Hyperliquid’s model sets it apart from other leading digital asset platforms.

The comparison with Bitcoin and Ethereum is notable. While BTC and ETH rely on halving events or fee-burning mechanisms to manage supply, Hyperliquid’s daily buybacks create constant downward pressure on circulating tokens, a feature that some analysts believe could accelerate price gains when demand rises.

Building the “Everything Exchange”

Beyond tokenomics, Hyperliquid has made progress on the infrastructure side. In recent weeks, the DEX has expanded partnerships with popular wallet providers, including Phantom and Rabby, enabling users to trade derivatives seamlessly without leaving their native wallets.

This move brings Hyperliquid closer to its broader ambition of becoming an “everything exchange,” similar to Coinbase but with a decentralized architecture. Analysts believe that if the platform successfully scales across multiple services, it could attract both retail traders and institutions seeking on-chain alternatives to centralized providers.

Traders Eye the $50 Level

Technical analysts remain focused on whether HYPE can decisively push above $50, a level that has acted as strong resistance since late July.

Prominent trader Byzantine General, well known in the crypto community, suggested on social media that the token’s price structure is “coiling very tight” and could move quickly once resistance is cleared. He confirmed he has increased his holdings, anticipating a strong upside breakout.

The liquidation heatmap from CoinGlass reveals key liquidity clusters around $41.8 and $49.6, highlighting these as zones where price activity could intensify. If bulls manage to build momentum, the removal of sell-side liquidity near $50 could pave the way for a sustained move higher.

Macro Conditions Add Another Layer

Of course, broader macroeconomic conditions cannot be ignored. September brings renewed market focus on the U.S. Federal Reserve’s expected rate cut, which could inject fresh risk appetite into global markets, including cryptocurrencies.

Should liquidity conditions improve, assets like HYPE — already backed by strong on-chain fundamentals — may be well positioned to benefit from increased capital inflows.

Investor Sentiment: Accumulation Over Distribution

Investor sentiment around HYPE has remained largely positive despite the recent 10% retreat from its local high near $50. Instead of triggering panic selling, the correction has led to accumulation.

Spot market behavior confirms this trend. Net outflows from exchanges suggest that holders are locking away their tokens, reducing immediate sell pressure. Combined with the exchange’s daily buybacks, this dual force of supply reduction could tighten market conditions and magnify any breakout move.

Outlook: A Breakout Waiting to Happen?

Whether HYPE will decisively break above $50 remains uncertain, but the conditions appear increasingly favorable. The combination of an aggressive buyback program, strengthening ecosystem partnerships, positive trader sentiment, and a supportive macro backdrop creates a foundation for a potential rally.

If bulls manage to overcome the $50 resistance, analysts suggest the next leg higher could develop rapidly, given the token’s tendency to move with high volatility during breakouts.

For now, HYPE continues to hover above $40, consolidating as investors weigh both technical and fundamental signals. But if accumulation trends persist and the buyback program keeps absorbing supply, the breakout many traders anticipate could arrive sooner than expected.