Citrini Research, which made waves in February by warning of an artificial intelligence bubble, has turned its attention to crypto derivatives platform Hyperliquid and its native HYPE token. In a report published Monday, the research firm described HYPE as “noteworthy” and argued that its value is backed by genuine revenue streams rather than mere speculation.
Unique buyback and revenue model
According to a section of the report shared on social media, Citrini Research emphasized that—unlike most crypto assets—HYPE generates legitimate cash flow and incorporates a token buyback mechanism. The full report remains behind a paywall, but key highlights have come to light.
The report notes that “over 90 percent of platform fees are directed to a buyback mechanism called the Assistance Fund, which is routinely used to purchase HYPE from the open market.”
Hyperliquid operates as a blockchain-based exchange, enabling users to trade perpetual futures not only in crypto assets, but also in commodities and private company shares. HYPE has been among the best-performing tokens this year, defying a broader downturn across digital assets.
Mini glossary: A perpetual futures contract is a type of derivative with no set expiry date. These contracts use a mechanism known as a funding rate to keep prices close to the spot market value.
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AAPLImpressive buyback and trading volumes
Data from DeFiLlama shows the platform has generated an annualized fee revenue of $1.06 billion, with perpetual futures volumes over the past 30 days reaching about $220 billion. Citrini Research highlighted not just the appeal of the model, but also the impressive scale of the buyback fund.
The report revealed that since the fund’s introduction in January 2025, cumulative token buybacks exceed $2 billion. Notably, these buybacks accounted for nearly half of all token repurchase activity across the crypto sector last year.
Market position and possible risks
Hyperliquid stands out as a dominant player in on-chain perpetual derivatives, capturing a large share of decentralized trading volumes. As a result, the investment thesis for HYPE is increasingly tied to the trading performance of the underlying exchange.
That said, some analysts warn that the sustainability of the buyback mechanism depends heavily on maintaining high trading activity. A decline in derivatives trading volumes could put significant pressure on the model.
Regulatory shifts in the US market
The article also pointed to emerging regulatory developments in the US. The Commodity Futures Trading Commission (CFTC) recently paved the way for certain crypto perpetual futures products to be offered under US oversight. The CFTC is the main federal agency regulating derivatives markets in the US.
This move has sparked fresh competition among exchanges in the world’s largest derivatives market. While Coinbase has already expanded its perpetual futures offerings in the US, Kraken is also expected to launch a similar product this month.
