Hyperliquid (HYPE) has extended its strong rally over the past two weeks, climbing more than 51% in just 14 days and pushing into fresh all-time highs near $64.

Notably, the rally has come through sharp bursts of buying activity, including single-day gains of around 10% during recent sessions.

At the time of writing, HYPE was priced near $63.57, just slightly below its record high of $64.27 set on May 24, 2026.

A major factor behind HYPE’s rally is the way Hyperliquid structures value capture from its trading platform.

The protocol routes a large share of its trading revenue into token buybacks, creating consistent buy pressure that scales with platform activity.

Recent figures show that more than $900 million has been allocated toward buybacks tied to protocol revenue, according to the data on the ASXN Hyperliquid Dashboard.

In practical terms, this means that when trading volume increases on Hyperliquid’s perpetual futures exchange, the system automatically channels a portion of those fees back into buying HYPE in the open market.

This mechanism has become more powerful as activity on the platform has expanded.

With daily trading volumes hovering around $1 billion, the buyback engine becomes closely tied to real usage rather than speculation alone.

The result is a feedback loop where higher volatility attracts more traders, which increases fees, which then increases buybacks.

Alongside buybacks, institutional involvement has started to play a larger role in sentiment and demand.

Structured investment products tied to HYPE have begun attracting inflows from funds such as Bitwise, which has contributed to broader exposure among traditional investors.

At the same time, ETF-style products linked to HYPE have introduced a new layer of demand outside native crypto markets.

While these inflows are smaller compared to the exchange’s internal buyback mechanism, they are steady and provide additional liquidity during periods of strong momentum.

FalconX, a major digital asset prime brokerage, has also highlighted Hyperliquid’s growing relevance in institutional trading infrastructure.

According to FalconX, Hyperliquid is increasingly being viewed as a challenger not just to crypto exchanges but also to parts of traditional trading venues.

This positioning has been strengthened by integrations with institutional service providers such as Anchorage Digital and Ripple Prime, which help bridge access between decentralised trading systems and traditional finance infrastructure.

The platform is no longer being viewed solely as a derivatives exchange focused on crypto perpetual contracts. Instead, it is expanding into broader market categories.

One of the key developments is the introduction of prediction-style contracts, which allow users to trade outcomes of real-world events.

This move brings Hyperliquid closer to markets traditionally dominated by platforms such as Polymarket and Kalshi, while still keeping execution within its existing trading ecosystem.

In addition to prediction markets, the platform has also been linked to early-stage discussions around pre-IPO and synthetic asset trading.

These developments point to an effort to expand beyond crypto-native instruments into broader financial speculation markets that operate continuously, 24 hours a day.

This expansion has strengthened the platform’s trading volume base, which is critical because activity directly feeds into the buyback mechanism supporting HYPE.

The post Here’s why Hyperliquid (HYPE) is up 51% in two weeks appeared first on Invezz

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