Buybacks get pushback, and markets rebound

Markets experienced a much-needed uptick yesterday, ending a multi-day decline. The rebound was driven by optimism regarding the potential rollback of Trump-era tariffs, which helped lift sentiment across risk assets. Both equities and crypto markets showed gains, with Bitcoin rising 2.36% and the Nasdaq increasing by 1.15%. Within the crypto sector, DePIN and DeFi sectors led the recovery, with increases of 6.7% and 6.1%, respectively. Despite this positive movement, the AI sector lagged, dropping 4%. In the aftermath of the October 10 crash that caused significant losses, the AI sector still showed resilience, with notable tokens like ICP and VIRTUALS bouncing back. Meanwhile, a governance proposal known as HIP-5 suggests reallocating a portion of Hyperliquid's fees into a buyback fund for certain tokens, sparking a debate over the effectiveness of this approach to support ecosystem projects.

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