AltcoinsExchange
|7 min ReadWhy Hyperliquid Can Reach $250 in 2026
Carter Hayes
Senior Analyst
Published
Jan 16, 2026
There’s a simple but shocking fact: the market is flooded with perp DEXs, but only one is on track to dominate with an automatic token buyback mechanism that could push its value sky-high. That’s Hyperliquid.
If you believe in the continued rise of perp DEX volumes, HYPE could be your ticket to owning that trend. Let me break it down for you and explain why I believe this token could soar to $250 in 2026.
The Bull Case for Hyperliquid
Right now, Hyperliquid is doing billions in daily volume and has a tremendous revenue stream. But what really sets it apart is how it uses that revenue to buy back HYPE tokens and keep the buy pressure on.
Here’s the simple math:
Hyperliquid is already pulling in about $1.3 billion annually in revenue.
97% of the fees are automatically funneled into an Assistance Fund that buys back HYPE tokens.
That’s already over $600 million spent on buying back HYPE, with a massive stash of tokens held by the fund itself.
Now, what does that mean for the price of HYPE? Well, let’s take a look at the potential scenarios.
The Core Mechanic: 97% of Fees = Token Buybacks
The key to Hyperliquid’s success—and the reason I’m so bullish on HYPE—is its token buyback mechanism.
Here’s how it works:
Traders pay fees on both perps and spot trades.
Those fees go straight into the Assistance Fund.
The Assistance Fund uses roughly 97% of those fees to repurchase HYPE tokens on the open market, which creates continuous buy pressure.
And that's not all:
On HyperEVM, gas is paid in HYPE.
A portion of the base fee is burned, adding a deflationary aspect to the system.
More volume equals more fees, and more fees equals more buybacks. It’s a beautiful feedback loop.
HyperEVM: The Second Engine
Hyperliquid doesn’t stop with just perps. It’s also launched HyperEVM, an Ethereum-compatible layer where:
Users pay gas fees in HYPE.
Some of those fees get burned.
Extra demand for HYPE comes from on-chain apps, perps front-ends, and HIP-3 markets.
This is the second engine behind Hyperliquid’s tokenomics.
Engine 1: More perp volume → more fees → more buybacks.
Engine 2: HyperEVM activity → more HYPE usage → more buybacks and burns.
Price Scenarios: What Happens Next?
Let’s walk through some price predictions based on current data.
Today’s data:
Perp DEX volume: ~$8B daily.
Hyperliquid’s share: ~20–22%.
Fee rate: ~0.04%.
Annualized revenue: ~$1.3B.
HYPE market cap: ~$10B.
Now, here’s what happens if we assume future growth in the perp DEX space and Hyperliquid’s market share.
Bear Case: $45–50
Let’s assume perp DEX volume grows by 1.5x, but Hyperliquid maintains its market share.
Annualized buybacks: ~$1.8B.
Market cap: ~$15.4B.
Price per token: $45–50.
Base Case: $80–90
In this scenario, perp DEX volume doubles, and Hyperliquid gains market share.
Annualized buybacks: ~$3.34B.
Market cap: ~$28.4B.
Price per token: $80–90.
Bull Case: $160–180
Here, the perp DEX market triples, and Hyperliquid takes a dominant market share.
Annualized buybacks: ~$6.68B.
Market cap: ~$56.8B.
Price per token: $160–180.
And that’s just the starting point. These numbers don’t even account for the additional upside from HyperEVM, the deflationary burn mechanism, or any new products.
But if everything falls into place—and if we see a full altseason in 2026—$250 for HYPE is not just a pipe dream. It’s possible.
Why I’m Bullish
Here’s why I’m all in on HYPE:
Real revenue: Hyperliquid is already generating over $1.3 billion annually and using 97% of it for buybacks.
Clean tokenomics: The 97% buyback structure is straightforward and aggressive—no gimmicks.
Perp DEX growth: Perp DEXs are taking market share from centralized exchanges, and Hyperliquid has been leading that charge.
HyperEVM: The extra demand from apps and markets on HyperEVM is just more fuel for the buyback fire.
Volume growth, high fee share, buybacks, and a consistent market multiple give HYPE a very clear path to higher prices, assuming Hyperliquid continues to dominate.
Final Thoughts
This is more than just a “narrative.” Hyperliquid is an incredibly liquid perp DEX with an L1 combo, generating billions in volume, with a token model that pushes nearly all fees back into the market, creating buy pressure. That’s a recipe for long-term price growth.
Are there risks? Of course.
But when the opportunity cost of holding HYPE is this high, I’m not backing down.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.