HYPE price has surged 12% on Monday after Coinbase activated its role as the official USDC treasury deployer on Hyperliquid, a move that could direct more revenue toward the protocol’s token buyback system.
Summary
- HYPE price jumped 12% after Coinbase activated the AQAv2 framework as Hyperliquid’s official USDC treasury deployer.
- The arrangement could increase Hyperliquid’s annual revenue by up to $200 million, potentially boosting HYPE buybacks through the protocol’s Assistance Fund.
- Technical indicators turned bullish as HYPE reclaimed key resistance levels, while traders continued monitoring FCA warnings and token unlock risks.
According to a June 8 announcement from Coinbase, the exchange has officially activated the AQAv2 framework on Hyperliquid through two designated treasury wallet addresses, taking over deployment responsibilities for the decentralized exchange’s USDC reserves.
The framework routes most of the yield generated from Hyperliquid’s USDC treasury back into the protocol’s ecosystem.
Coinbase previously stated that the arrangement could increase Hyperliquid’s annual revenue by as much as $200 million. Because Hyperliquid allocates up to 99% of protocol revenue to HYPE buybacks through its Assistance Fund mechanism, higher protocol revenue could increase the amount available for token repurchases.
Data from crypto.news shows Hyperliquid (HYPE) traded around $64 on June 8 after rebounding from an intraday low near $57, recovering much of the decline triggered by last week’s crypto market liquidation event. The token remains below its recent all-time high of approximately $75.48 but has climbed sharply from the correction low near $55.5.
Coinbase activation could increase buyback capacity
The activation comes less than a month after Coinbase announced it would become Hyperliquid’s official USDC deployer and revealed an increase in its staked HYPE holdings.
Activity across the Hyperliquid ecosystem has continued to expand. USDC serves as the collateral asset for HIP-3 and HIP-4 markets, while Trade.xyz, a HIP-3 platform built on Hyperliquid, recently recorded $16.18 billion in weekly trading volume, according to data cited by Coinbase.
Additional support has come from Kraken’s recent launch of HYPE staking, which provides holders with another way to earn yield.
On-chain data from HypurrScan shows that one of the newly activated Coinbase treasury wallets already holds more than $32 million worth of staked HYPE. A second wallet associated with the deployment had not recorded any transactions at the time of writing.
Technical indicators point to improving momentum
While fundamental developments supported sentiment, technical indicators also showed signs of recovery.
The four-hour HYPE chart shows the token rebounding from support around $55.5 and breaking back above a descending trendline that had capped prices since the recent all-time high. The move also pushed HYPE above key Fibonacci retracement levels near $59.8 and $63.2.
Momentum indicators have turned more constructive. The MACD has produced a bullish crossover, while the Aroon indicator points to strengthening trend momentum after recent highs began forming again.
According to crypto trader Owl Prints, Bitcoin’s correction was absorbed near trendline support and the $54.79 horizontal support zone, while the recovery above $62.69 suggests buyers have regained control of the market.
“Bulls are in control again. Bitcoin’s correction was a healthy retest of the breakout, while Hyperliquid’s revenue and buybacks continue to support the trend.”
Despite the improving technical picture, traders continue to monitor risks stemming from the UK Financial Conduct Authority’s recent warning regarding Hyperliquid-related activity, alongside concerns about future token unlocks and valuation levels.
Protocol fundamentals have remained strong nonetheless. According to Hyperliquid data, the platform generated $29.5 million in fees and $24.07 million in revenue last week, its strongest revenue performance since early February.
HYPE’s rally today also came hours after speculation emerged that a wallet linked to BitMEX co-founder Arthur Hayes had accumulated nearly $2.1 million worth of HYPE following last week’s correction. Hayes later denied re-entering the position.
Hayes has been facing criticism from community members since last week, when he liquidated his entire HYPE position, then worth roughly $18 million. His sale followed just days after the trader predicted the token could reach $150 by year-end.
In addition to exiting his HYPE position, Hayes also liquidated his holdings in NEAR, Zcash, and Worldcoin, citing rising energy prices linked to the Iran conflict, upcoming artificial intelligence IPOs, and concerns that financial markets could peak before September.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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