Hyperliquid AQAv2 Launching on August 26, Expected to Add $135 to $160 Million in HYPE Buybacks Annually

The decentralized derivatives trading platform Hyperliquid's native token HYPE is approaching $73, and the fee burn mechanism will expand after the AQAv2 upgrade, potentially supporting its performance in the next bull market. Since November 2024, Hyperliquid has repurchased and burned 462 million HYPE tokens, valued at approximately $1.27 billion, with about 99% of protocol fees used for buybacks. The platform's annualized protocol revenue is currently around $600 million to $950 million. AQAv2, which stands for Aligned Quote Asset v2, is set to begin on August 26, aiming to direct about 90% of the platform's over $5 billion USDC reserves into the Assistance Fund, with the first funds expected to arrive on October 3. Market participants estimate that AQAv2 could add an additional $135 to $160 million in buyback scale annually. Coinbase and Circle, designated as Hyperliquid's official USDC fund deployers in May, have both committed to staking a significant amount of HYPE to assist in launching this mechanism.

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