Hyperliquid activated AQAv2 to fund a HYPE buyback-and-burn program using USDC yield after HYPE reached a new all-time high of $83.73. The setup gives holders a direct read on whether the protocol can keep turning reserve earnings into token demand.
Hyperliquid and USDC
Hyperliquid reportedly plans to launch the HYPE buyback-and-burn program through the AQ1v2 activation, using yield earned through the USDC stablecoin. The mechanism is straightforward: reserve yield is routed into purchases of HYPE, then the tokens are burned, which reduces supply rather than recycling the proceeds back into circulation.
HYPE rallied 43% last week and was roughly 49% below its historic top achieved 12 months ago at press time. That gap leaves the new high important, but not definitive, because the price still has to hold while the buyback flow begins to operate in size.
Wintermute and HYPE ETFs
Trading data around the move was not one-way. Wintermute cut HYPE short exposure from $211.5 million to $80.4 million, while HYPE ETFs saw $13.2 million in inflows on Monday and Tuesday. Those two shifts point in the same direction, but they do not guarantee the buyback program will deliver the same pace of demand once USDC yield is actually deployed.
The market backdrop also complicates the clean bullish read. The market had been consolidating near its recent high for 4 days, HYPE price was described as deeply overbought at press time, and whale order flows indicated preparation for a pullback in limited amounts. That leaves the burn program as a supply-side support, not a blank check for higher prices.
Terry Duffy and US
Terry Duffy, the CME Group CEO, said it could play a major role in the US push towards 24/7 market operations. President Trump’s remarks about Hyperliquid’s entry into the US had earlier sparked optimism, adding a separate layer of attention around the token as the buyback activation went live.
For HYPE holders, the practical question is not whether the mechanism exists, but how much demand it generates once USDC yield starts feeding the buyback-and-burn program. If the flow stays meaningful, it can help offset supply pressure; if it is thin, the new high may prove harder to extend.
