HYPE price could suffer as Binance takes its revenue: Alice Liu
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Alice Liu, Head of Research at CoinMarketCap, discussed Bitcoin's price briefly touching a bottom around $59,000 in June and a recent rally to $81,600 in early September. She highlighted developments outside Bitcoin in tokenized real-world asset (RWA) perpetual futures, noting Hyperliquid (HYPE) currently holds market share but faces competition from Binance, which has captured about 50% of the RWA perp market. Liu pointed out Hyperliquid's strong token buybacks exceeding $400 million have supported HYPE's price, which recently hit an all-time high of $86.
Why it matters
According to the source, this indicates shifting market dynamics as centralized exchanges like Binance attract liquidity away from decentralized venues such as Hyperliquid. The sustainability of HYPE's price depends heavily on ongoing revenue to fund token buybacks, linking network activity to token value. Liu also suggested caution regarding AI-related crypto tokens lacking utility, which may face significant competitive pressures.
Key context
Liu referenced Bitcoin’s price volatility in 2023, marking a 53% drop from its all-time high before a sharp rally. The discussion focused on the rise of tokenized perpetual futures on both centralized and decentralized platforms, with Hyperliquid previously leading the space before Binance aggressively entered. Hyperliquid employs buybacks to support its token price while managing a limited token unlock schedule.
Key numbers and entities
Bitcoin’s June low was around $59,000, about 53% below October 2021’s peak of $126,100. Bitcoin rallied approximately 28% to $81,600 in September. Binance holds about 50% market share of RWA perpetual futures volume. Hyperliquid’s HYPE token price reached $86 with over $400 million spent on buybacks.
What remains unclear
The source does not specify detailed tokenomics for Hyperliquid beyond buybacks, nor the long-term revenue projections sustaining those buybacks. The precise impact of Binance’s growing RWA perp volume on the decentralized market’s overall health remains vague. Also, the actual network activity levels that will support Hyperliquid’s revenue and token price dynamics are not quantified.