Weiss Crypto presents a two-pronged case for the HYPE token Hyperliquid: the protocol’s money-based tokenonomics, but it’s clear that investors shouldn’t mistake momentum for a lack of risk. In a series of posts in recent days, one research outlet argued that the buyback and burn structure of HYPE remains a core strength, even as token openings, competition and regulation remain firmly on the table.
Hyperliquid faces 3 main risks and bullish case
The warning note was direct. “But there are some HYPE risks that investors should consider,” Weiss Crypto said Wednesday before naming three areas to watch. The first is the expansion of supply from the opening of contributors. “April saw the issuance of 9.92 million HYPE tokens, which is relatively modest compared to the trading activity of the platform.” Even as modest, the point was clear: fresh supply is still important, especially for a token whose strong reputation depends on declining circulation.
Weiss also pointed to market structure risks. “Right now, Hyperliquid has a clear first-mover advantage. But that doesn’t mean a powerful disruptor can’t emerge.” This creates a familiar tension in the crypto trading infrastructure. An early lead may seem durable, especially when liquidity, activity, and interest reinforce each other, but it can also invite direct attacks from better-capitalized or more aggressive competitors.
Related reading
The third risk is regulatory. “U.S. residents will likely remain geographically limited until regulatory clarity, and sector growth will slow.” In other words, Weiss sees the addressable market as currently limited, not because the product lacks traction, but because the broader reach and expansion of the sector remains tied to unresolved policy conditions.
This warning came alongside a constructive discussion about HYPE itself. In a separate post built around the infographic, Weiss called the token design “Tokenomics done right.” The graphic describes what is called the “Powerful Return Cycle”, a flywheel where increased platform activity leads to more trades, more protocol payouts, more token buybacks, and less circulating supply.
The central part of this thesis is the placement of money. According to the infographic, “97% of trading fees were used to purchase HYPE tokens.” From Weiss’s framework, this mechanism is what transforms platform usage into direct token support. As activity increases, “buybacks accelerate”, “circulating supply decreases” and the token’s “appreciation potential” increases, along with the opportunity to attract even more activity. Weiss also highlighted the scale of the mechanism with a headline number: “Only during 2025, the protocol will burn about 1 billion US dollars.” This number is located in the center of the bullish case.
Related reading
Another post by Weiss attempted to show this demand in a market stress event. “Hyperliquid reached a major milestone on Sunday as tensions escalated in the Middle East. It handled $1 billion + in oil-related trades. Why? Because traditional oil markets were closed for the weekend. Decentralized markets never sleep.”
Weiss paired the message with Bitwise CIO Matt Hogan’s earlier observation that when President Donald Trump announced the attack on Iran at 2:30 a.m. Sunday, markets in the US, Europe and Asia were closed while “HYPE was open.”
Taken together, Weiss’s message is not complicated, but it is subtle. The outlet sees Hyperliquid as a living example of a cryptographic infrastructure that thrives when legacy markets aren’t available, and sees the paid design and HYPE burn as unusually strong.
At the same time, it shows that even a token backed by an active buyback loop still faces opening calendars, competing platforms and the reality of slower US regulation.
At press time, HYPE was trading at $37.87.
Featured image created with DALL.E, chart from TradingView.com
