HYPE achieved another all-time high of $84.80 on Thursday, marking its second record in seven days and representing a 4% daily gain. The token's market capitalization now approaches $19 billion, with the rally clearing the previous $77 ceiling and establishing that level as strong support. According to technical analysis, weekly and daily charts now point to $92 as the next resistance target, representing approximately 10% upside from current levels. The weekly candle that broke $77 gained roughly 40%, while the token has demonstrated resilience by retesting the old record at $76.75 before reversing higher. Weekly RSI has reclaimed the 70 level, similar to a reading in mid-May that preceded a rally of about 100% into the previous record, suggesting potential for a repeat performance that could target the 1.618 Fibonacci extension at $111.93.
Hyperliquid activated its Aligned Quote Asset v2 (AQAv2) framework for USDC on August 26, creating a new revenue source for its HYPE purchasing fund. According to the protocol's official announcement, approximately 90% of cost-adjusted reserve yield generated from USDC supplied to Hyperliquid will be allocated for HYPE token buybacks and burns. The revenue will accumulate in 30-day intervals before being transferred automatically to the Assistance Fund eight days later. An initial implementation grace period means the first payment will arrive on October 3, giving the market about five weeks to digest this structural shift in how the protocol manages its treasury. As highlighted by crypto commentator @WuBlockchain, this initiative positions Hyperliquid to potentially enhance HYPE's value and market perception.
The framework extends Hyperliquid's aligned quote asset framework to stablecoins that are not exclusive to the network. As reported by the protocol, Coinbase serves as USDC's treasury deployer and manages the reserve structure, while Circle operates as technical deployer maintaining minting, redemption and native cross-chain transfer infrastructure through its Cross-Chain Transfer Protocol. Both companies staked 500,000 HYPE to activate the framework, with the treasury deployer's stake subject to slashing if its designated address lacks sufficient funds for automatic revenue deductions. To ensure long-term commitment, both parties must provide 6-month notice before exiting and face 2% daily penalties if treasury address balances become insufficient for yield deductions.
AQAv2 maintains USDC between a linked smart contract and Coinbase's designated treasury address in a 1:9 ratio allocation, with roughly 90% held at the treasury address and 10% in the HyperEVM contract. According to the protocol, system transactions rebalance the two addresses during every HyperEVM block to maintain liquidity while allowing most reserves to generate revenue. Based on current USDC circulation of approximately $6.74 billion, the framework is estimated to generate approximately $182 million annually at a 3% reserve yield rate. However, with USDC balances on the platform exceeding $5 billion and the 3% yield rate assumption, the annualized revenue from AQAv2 is projected between $135-200 million. This represents 15-25% of Hyperliquid's current annualized trading fee revenue of approximately $600-950 million, creating a significant diversification in revenue streams that doesn't depend on trading volume fluctuations.
The rally received additional momentum from regulatory developments, as President Donald Trump announced on August 20 that Hyperliquid could be available in the US soon, with the CFTC already working on a compliant pathway. On Wall Street, spot HYPE exchange-traded funds have logged renewed inflows, and the token leads its top 10 peers this month. The framework represents Hyperliquid's transition from a platform reliant on trading fees to a protocol model capturing value across multiple channels, including trading, stablecoins, and the on-chain financial ecosystem. Since HYPE's token launch in November 2024, the protocol has already burned 462 million HYPE tokens valued at approximately $1.27 billion through its original buyback program. The $174-200 million annual revenue ceiling serves as a starting point rather than a ceiling for potential growth, though yield sustainability depends on stable lending markets and consistent borrowing demand.
