Citrini says Hyperliquid's legitimate cash flow, token buyback strategy make for 'compelling' investment

Citrini Research called Hyperliquid a compelling investment, citing the protocol's ability to generate significant cash flow while funding a large-scale token buyback program.

"Unlike the memetic majority of crypto (bitcoin included), HYPE generates legitimate cash flow," Citrini said in its Substack published Monday. "Over 90% of the fees generated from the platform are redirected into the Assistance Fund, which are then systematically used to purchase HYPE on the open market."

The HYPE token, which recently hit an all-time high of nearly $75, had risen by over 8% during the past 24 hours as of 1:50 p.m. ET on Monday.

"The structure in itself is attractive, but what's more astonishing is the pure scale of the Fund," Citrini said, adding that "by some measures, Hyperliquid repurchases have accounted for nearly half of all token-buyback activity across the crypto market in 2025."

Last week, (HYPE) overtook Solana in price, a major milestone for the token tied to the popular decentralized perpetuals exchange. Although the gap between the two has been narrowing, Solana's $39 billion market cap remains more than double HYPE's. Still, HYPE has been outpacing the broader crypto market in recent weeks, gaining in price while bitcoin and ether decline.

"The Hyperliquid runway is wide," Citrini said Monday. "We think there is still significant market share to be captured."

Citrini also pointed to Bitwise's Hyperliquid ETF (BHYP) helping to broaden interest in the exchange. As of last week, 21Shares and Bitwise's Hyperliquid ETFs had together registered nearly $600 million in trading volume with over $136 million in net inflows in three weeks.

Citrini made waves earlier this year with a bearish research report on the artificial intelligence boom, which led to a massive cross-market sell-off.