๐ฅ $HYPE has spent over $1.16 billion to buy back HYPE?
According to Forbes contributor Zennon Kapron, the recent strong surge of HYPE might be driven by the token buyback mechanism rather than just expectations around ETF products.
๐ Since its launch, HYPE is reported to have used nearly all of its revenue from transaction fees โ over $1.16 billion โ to buy back HYPE in the market through the Assistance Fund.
๐ This creates a continuous demand source amounting to hundreds of millions of dollars each quarter, helping to support HYPEโs price and absorb supply in the market. According to Kapron, this mechanism could even have a stronger impact than ETF capital inflows during the early stages.
โ ๏ธ However, this model also heavily relies on trading volume. If the market enters an extended downturn that significantly reduces fee revenue, the scale of buybacks will shrink, thereby weakening the price support for HYPE.
๐ Nevertheless, with over $1 billion already used for buyback activities since its launch, HYPE is becoming one of the strongest value accumulation tokens in the DeFi space right now.
#HYPE #DeFi #Crypto
According to Forbes contributor Zennon Kapron, the recent strong surge of HYPE might be driven by the token buyback mechanism rather than just expectations around ETF products.
๐ Since its launch, HYPE is reported to have used nearly all of its revenue from transaction fees โ over $1.16 billion โ to buy back HYPE in the market through the Assistance Fund.
๐ This creates a continuous demand source amounting to hundreds of millions of dollars each quarter, helping to support HYPEโs price and absorb supply in the market. According to Kapron, this mechanism could even have a stronger impact than ETF capital inflows during the early stages.
โ ๏ธ However, this model also heavily relies on trading volume. If the market enters an extended downturn that significantly reduces fee revenue, the scale of buybacks will shrink, thereby weakening the price support for HYPE.
๐ Nevertheless, with over $1 billion already used for buyback activities since its launch, HYPE is becoming one of the strongest value accumulation tokens in the DeFi space right now.
#HYPE #DeFi #Crypto