Hyperliquid Price Forecast: $14.5M USDC yield to sponsor HYPE buybacks

• Hyperliquid received its first $14.58 million USDC yield payment under the AQAv2 framework, marking a new revenue stream for the protocol.
• AQAv2 directs approximately 90% of cost-adjusted USDC reserve yield to Hyperliquid’s Assistance Fund for HYPE buybacks.
• HYPE faces resistance near its $97.7 all-time high.

Hyperliquid (HYPE) said Monday that it received its first $14.58 million USDC payment under its Aligned Quote Asset v2 (AQAv2) framework, creating a new revenue stream that can fund HYPE token buybacks independent of trading activity.

Hyperliquid expands HYPE buyback funding

The payment represents the first distribution from yield generated on USDC reserves held within the Hyperliquid ecosystem. Under AQAv2, the protocol shares about 90% of cost-adjusted reserve yield with its Assistance Fund, which uses protocol revenue to buy HYPE.

Yield accrual began after AQAv2 was activated in late August, with the first payment covering roughly 30 days of activity.

The development gives Hyperliquid another revenue source for its HYPE buyback mechanism, which has historically relied primarily on trading fees. AQAv2 lets Hyperliquid generate yield from USDC reserves even when the assets are not actively traded.

Users can bridge USDC into HyperEVM, where Circle provides the infrastructure for USDC issuance, while Coinbase acts as the treasury deployer. The resulting reserves generate yield, with a portion of that income flowing back to Hyperliquid.

The first $14.58 million payment would translate to roughly $193 million annualized if the protocol generated the same amount every 30 days. The $14.58 million payment does not imply the protocol has already purchased or removed the amount of HYPE from circulation. The funds are intended to support the Assistance Fund's buyback activity, with HYPE purchases occurring separately.

Hyperliquid technical outlook: HYPE faces resistance near $97.7 record high

On the daily chart, HYPE maintains a bullish near-term bias as price holds above the 20-, 50-, and 100-day Exponential Moving Averages (EMAs) at $89.5, $83.1, and $74.8, respectively. The alignment of shorter EMAs above the longer one hints at a sustained uptrend structure, while the 14-day Relative Strength Index (RSI) at 58 stays in neutral-to-positive territory, suggesting ongoing but not overstretched buying pressure.

On the topside, initial resistance is seen at the horizontal barrier near $97.7. A rise above that level will see HYPE establish a new record high ahead of a stronger cap at $109.1. On the downside, immediate support emerges at the 20-day EMA around $89.5, followed by the nearby horizontal level at $85.6, with the 50-day EMA at $83.1 and the lower supports at $75.4 and $74.8 expected to underpin any deeper corrective pullbacks.

(The technical analysis of this story was written with the help of an AI tool. Know more.)