Hyperliquid Revenue Surpasses $1.4 Billion as HYPE Buybacks Top $1.26 Billion
Hyperliquid's cumulative protocol revenue has surpassed $1.4 billion, with more than $1.26 billion directed toward open-market buybacks of its native HYPE token, according to an onchain perpetuals market research report by Castle Labs, cited According to by Wu Blockchain. The report also estimates that Hyperliquid accounts for more than 56% of the onchain perpetuals market by open interest.
The figures highlight the scale of Hyperliquid's revenue generation and its approach to using protocol income to purchase HYPE on the open market. The platform has also developed an integration mechanism that allows third-party applications to access its trading infrastructure and generate revenue from perpetuals trading without building their own systems.
Hyperliquid's Revenue and HYPE Buyback Strategy
Castle Labs reported that Hyperliquid's cumulative protocol revenue has exceeded $1.4 billion, while spending on open-market HYPE buybacks has surpassed $1.26 billion. These figures represent two key financial metrics associated with the protocol: the revenue it has generated over time and the amount allocated to purchasing its native token in the market.
The reported buyback expenditure is equivalent to more than 90% of the $1.4 billion revenue threshold cited in the report. However, the figures do not establish an exact allocation ratio because both reported amounts are expressed as minimum thresholds rather than precise totals. They also do not, on their own, establish the protocol's net profit or the full breakdown of its expenses.
Hyperliquid's reported market position is another significant finding. According to Castle Labs, the protocol holds more than 56% of the onchain perpetuals market when measured by open interest. Open interest represents the value or number of outstanding derivative contracts that remain open, making it a measure of activity and positioning in markets derivatives markets rather than a direct measure of trading volume or revenue.
Builder Codes Expand Third-Party Access
The report also examines Hyperliquid's Builder Codes mechanism, which enables third-party wallets and applications to integrate with its trading infrastructure. Through this arrangement, external platforms can offer perpetuals trading to their users and earn revenue without having to develop their own underlying trading systems.
The mechanism provides an integration path for established crypto applications seeking to incorporate perpetual futures functionality into their products. Instead of independently constructing the infrastructure needed to support such trading, participating applications can connect to Hyperliquid and generate revenue through the Builder Codes system.
Phantom and MetaMask Generate Millions in Revenue
Castle Labs' report identifies Phantom and MetaMask as examples of applications earning revenue through the mechanism. Phantom has generated more than $25 million in cumulative revenue through Builder Codes, while MetaMask has earned over $10.5 million.
The reported figures show that both wallets have generated substantial cumulative revenue by integrating with Hyperliquid's trading infrastructure. Phantom's reported total exceeds MetaMask's by more than $14.5 million based on the stated thresholds, although the figures do not provide a complete breakdown of either application's earnings over time.
The findings cited by Wu Blockchain cover Hyperliquid's cumulative protocol revenue, HYPE buyback expenditure, market share by open interest and the revenue earned by third-party applications. Castle Labs' report places the Builder Codes mechanism alongside Hyperliquid's broader financial performance, with Phantom and MetaMask among the named participants generating revenue through the integration model.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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