HYPE Holds Above $70 as ETF Demand and Buybacks Fuel the Rally

$HYPE has remained above $70 after reaching a record high near $75, even as analysts weigh whether the token's rally still has room to run. According to CoinGecko data, Hyperliquid's native token traded around $73 on Thursday after briefly touching an all-time high above $75 earlier this week. The rally has stood out against a difficult backdrop for digital assets, with Bitcoin, Ethereum and several major cryptocurrencies posting steep losses during the same period. Nothing says "risk-on" like the one token ignoring the market's collective bad day.

Much of the recent strength has coincided with growing institutional access to the asset. On June 3, Grayscale launched the Hyperliquid Staking ETF under the ticker HYPG, becoming the third US spot $HYPE exchange-traded fund after products from 21Shares and Bitwise. The fund carries a 0.29% sponsor fee, slightly undercutting its direct competitors, because apparently the ETF fee war has now extended to assets that didn't exist a year ago.

Meanwhile, according to SoSoValue data, the competing THYP and BHYP funds attracted more than $136 million in net inflows and generated nearly $600 million in trading volume within their first three weeks on the market. Recent SEC disclosures also showed that large financial firms have gained exposure to Hyperliquid-linked investment products, adding to the narrative that traditional capital is entering the ecosystem. Notably, Form 10-Q and 8-K filings reveal aggressive corporate treasury pivots from public companies like KIDZ AI and Lion Group Holding, alongside massive dedicated entities like Hyperliquid Strategies Inc, whose corporate balance sheet controls over $689 million in native $HYPE. Yes, someone's treasury is now denominated in a token that was a quiet mid-cap a few months ago.

Can $HYPE keep climbing after its record run? While ETF demand has attracted most of the attention, Hyperliquid's token structure has also contributed to the rally. The protocol directs more than 97% of its revenue toward buying back $HYPE from the open market. As trading activity increases, those purchases grow alongside it, which is the kind of supply sink either a finance textbook or a very motivated Discord thread would describe as "bullish."

At the same time, DeFiLlama data shows that Hyperliquid's total value locked recently climbed to about $5.9 billion, which is a sign of increased network activity. In the meantime, supply conditions remain tight as 61% of $HYPE's supply is locked until 2028, limiting the number of tokens available on the market. Combined with ETF accumulation and staking participation, the reduced float has amplified the effect of new demand. The market's "where did all the tokens go" question currently has a 2028-shaped answer.

Institutional interest has arrived as Hyperliquid continues expanding its footprint in derivatives trading. The platform captured a record 6.63% share of global perpetual futures volume in May, while HIP-3 builder-deployed perpetual contracts generated more than $62 billion in monthly trading activity. Hyperliquid's trading volume relative to Binance also reached a record level during the month. Binance watching its market share slip on a perps chart is, in fact, the kind of plotline crypto Twitter lives for.

Technical picture still favors bulls, but caution is emerging. Price action suggests the uptrend remains intact despite a modest pullback from recent highs. On shorter timeframes, the rally has yet to show clear signs of failure. The 4-hour chart shows $HYPE holding above a breakout zone that formed after a bull pennant pattern resolved to the upside, because no crypto rally is complete without a chart pattern with an animal name.

Following a rapid advance from the mid-$40 range to new highs above $75, price has entered a consolidation phase rather than a sharp reversal. Support remains concentrated around the $72 to $75 area, which previously acted as resistance before the breakout. Holding that region would keep the bullish structure intact, while a sustained move below it could expose the token to a deeper pullback toward the $64 level. Old resistance becomes new support, which is what the chart said, not the marketing team.

The daily chart continues to support the longer-term trend. $HYPE remains above its 20-day, 50-day, 100-day and 200-day exponential moving averages. The 20-day EMA sits near $62, while the 50-day EMA is around $53, leaving considerable distance between price and key trend indicators. Momentum indicators show the market approaching stretched conditions after its recent run. The daily Relative Strength Index remains close to 70, a level