Hyperliquid recently burned $1.2 million worth of its HYPE tokens, hoping to reduce inflation and push the price above $60. The project continues to rely heavily on buybacks and burns funded by protocol revenue, a strategy aimed at controlling supply amid stagnant price movement.
Steady Revenue and Deflationary Efforts
Since August 2025, Hyperliquid has generated $800 million in net income, with HyperCore contributing 95% of that figure. Out of a total of $1.03 billion earned, an overwhelming $1.01 billion has been spent on buybacks and burns. Just in the last 24 hours, the network produced $1.4 million in fees, using those funds to burn 20,640 HYPE tokens. This active deflation has reduced the token supply by 4.73%, equating to more than 15% of the current circulating supply.
Such sustained capital deployment has helped stabilize HYPE during an extended period of broader market weakness. despite the continuous burns, the amount of capital spent on these efforts has dropped 61%, signaling possible limits to this approach.
Demand and Price Momentum Challenges
While investor interest remains strong with net inflows on exchanges improving to -$598k from -$3.2 million the previous day, the token’s momentum is faltering. The RSI Momentum Trend currently sits above the market price, indicating sellers still dominate. The Squeeze Momentum Indicator is also negative at around -7.69, confirming weak upward momentum despite the price attempting to climb.
For HYPE to flip into a bullish trend, it needs a daily close above $60. Failure to hold this level could push prices down toward $56 again, increasing downside risk. The price remains on an upward path but has yet to break the critical resistance posed by these momentum indicators.
This content is for informational purposes only and should not be considered financial advice.
