Hyperliquid's native token HYPE has surged 8% over the past 24 hours, reaching an all-time high above $50, driven by record trading activity and an automated buyback mechanism. The decentralized exchange reported over $357 billion in derivatives volume for August, a significant increase from July and nearly tenfold compared to the previous year. The exchange also generated $105 million in trading fees, which have been leveraged to buy back HYPE tokens, effectively reducing circulating supply. The Assistance Fund, which buys back HYPE on the open market, has seen its holdings increase dramatically since its launch, now possessing nearly 30 million tokens worth over $1.5 billion. Despite the positive momentum, analysts caution about the token's high valuation, with scheduled unlocks starting in November posing potential risks for selling pressure.

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