Hyperliquid's HYPE token has reached a record high of $69.97 on May 31, extending one of the strongest large-cap crypto rallies of the month with monthly gains topping 67%. The token has cleared the previous swing high near $59.45 and is now trading near record highs, supported by stronger spot demand and growing interest in the platform's trading activity. According to Capital Flows analysis, the rally accelerated as ETF inflows, buybacks, and derivatives activity continued expanding simultaneously. The token's chart remains strong after clearing the previous swing high, with buyers still controlling the short- and medium-term trend. HYPE has gained 60% in the last year, with the token decoupling from Bitcoin as Hyperliquid's platform revenue explodes across multiple sectors.
ETF demand remains one of the main themes behind HYPE's move, with cumulative net inflows reaching $100.48 million by the end of May. As per SoSoValue data, inflows began at $2.52 million on May 13, rose to $72.38 million by May 22, then slowed to $25.57 million by May 28. Total net assets also rose from $3.17 million on May 13 to $122.20 million by May 28, with total value traded reaching $383.77 million across the month. HYPE-linked ETF products crossed $100 million in cumulative inflows within their first 10 trading sessions, with Bitwise planning to use 10% of BHYP management fees to buy and hold HYPE on its balance sheet. The token now holds the number 11 market rank with a market capitalization above $15 billion and fully diluted valuation above $65 billion.
Hyperliquid's HYPE token buyback program has reached a significant milestone, surpassing $2 billion in total purchases since launch. The protocol's Assistance Fund continues to direct 97% of trading fees into continuous, automated market purchases of HYPE tokens, with daily buybacks averaging around $1 million and reaching peaks of $3.97 million in single days. Recent data shows approximately 210,000 HYPE tokens were bought back last week alone, with the Fund now holding 44.52 million HYPE tokens, including 26.81 million tokens purchased through buybacks. The updated figures demonstrate the sustained effectiveness of the automated buyback mechanism, which has now processed over $2 billion in token purchases through genuine protocol revenue. In Q1 2026 alone, $192 million was repurchased, highlighting the accelerated pace of token buybacks.
Despite HYPE's impressive performance, significant security concerns have emerged around Hyperliquid's operational structure. The platform operates with only 30 validators, a dramatically smaller number compared to established blockchains like Ethereum (900,000 validators), Cardano (3,000 validators), and Solana (700+ validators). This validator concentration creates a risk that a small team could exert too much control over the platform. A notable example occurred in March 2025 when a trader opened a short position on JELLY, a low-cap meme coin, and then pumped the token's price on other decentralized exchanges. The Hyperliquid Liquidity Pool inherited the short position and faced potential losses of $13.5 million before validators voted to manually delist JELLY at $0.0095 rather than the inflated market price of $0.50.
Technical indicators remain bullish despite the small pullback after the record high, with HYPE holding above key moving averages. The 9-day moving average sits near $62.52 while the 21-day moving average is near $53.51, with the shorter average well above the longer one showing strong short-term momentum. The MACD line stands at 6.112, above the signal line at 4.890, with the histogram at 1.222 showing active upward momentum. As long as HYPE holds above the 9-day moving average, the breakout structure remains intact, with $62.50 marking the first key support area and a deeper drop potentially bringing the $53.50 zone into focus. The next upside area sits near $80, with earlier reports framing this as a possible target if ETF inflows, buybacks and trading activity continue supporting the token. However, traders are watching for weaker histogram bars as an early sign that momentum may be cooling.
