Citrini Research has published an analysis that points to Hyperliquid as a compelling buy, with the decentralized exchange now handling nearly half of all crypto token buybacks. The report, released this week, highlights how Hyperliquid's platform has become the go-to venue for projects looking to repurchase their own tokens — a practice that has exploded across the industry.
What the report found
The analysis doesn't mince words: Hyperliquid's DEX is the dominant player in a market that's grown quickly over the last year. According to Citrini, roughly half of all token buybacks now run through Hyperliquid. The firm argues that this positions the exchange to capture a steady stream of fees and attention from both projects and traders.
Why buybacks matter
Token buybacks are a tool crypto projects use to reduce circulating supply and signal confidence to holders. They've become increasingly common as teams seek to prop up prices without resorting to more aggressive measures. Citrini's data suggests Hyperliquid has become the default choice for these transactions, giving it a unique advantage over rivals that still rely on older, less efficient methods.
The investment case
Citrini's report frames Hyperliquid's buyback dominance as a moat — the kind of network effect that's hard for competitors to replicate quickly. The firm notes that the DEX's infrastructure is tailored to handle large, automated buyback programs, which many projects now run on a schedule. That, combined with the exchange's liquidity, makes it a sticky platform for both token teams and the traders who follow their moves.
The analysis is aimed at institutional investors looking for exposure to decentralized finance infrastructure. It doesn't give a price target, but it clearly sees Hyperliquid's current role in the buyback ecosystem as undervalued by the broader market.
The open question
Hyperliquid's lead in this niche is real — but it's not guaranteed to last. Other DEXs are already building similar buyback rails, and the space is still young. Whether Hyperliquid can hold onto its share as competition heats up is the unresolved question that Citrini's report leaves on the table. For now, the numbers speak for themselves.
