hype

Hyperliquid has been having a tough time for weeks now. The Hyperliquid token was once worth fifty dollars but then people who wanted to sell started to take over. The price of Hyperliquid started to go down. It kept falling until it reached a low point of around twenty two dollars. Now Hyperliquid is trading at around twenty four dollars and it is losing value on a daily and weekly basis. People are not feeling very confident, about Hyperliquid and a lot of people are still trying to sell, which is putting more pressure on the price of Hyperliquid.
The Hyper Foundation had to do something about the pressure they were getting. So they made a decision after the people in charge voted on it. They got rid of than thirty seven million HYPE tokens. These HYPE tokens were worth around nine hundred twelve million dollars at the price they were going for at that time. The Hyper Foundation got these HYPE tokens, from the Assistance Fund. The Assistance Fund had been buying back HYPE tokens. Putting them away since December of last year.
The buyback effort was going along smoothly. The foundation was spending around one and a half million dollars every day to buy tokens from the market. Last week they used more than twelve million dollars to buy almost five hundred thousand tokens. The buyback effort the buyback effort was really working out. Over time the total tokens in the fund went up from around nine million tokens to than thirty seven million tokens. The foundation was buying a lot of tokens the tokens and this was making the total holdings, in the fund grow.
The vote passed with strong support. Then these tokens were sent to an address that nobody can get to. This means the tokens were gone for good. They were permanently removed from circulation. Because of this around eleven to thirteen percent of the tokens that people could use were cut. This change makes the tokens harder to get. It improves the scarcity of the tokens. The scarcity of the tokens is better now.
Token burns often try to cut down the pressure to sell. When there are tokens around people who want to sell them do not have as much power in the market. In the past when this kind of thing happened it helped to make prices more steady. Sometimes they even went back up. Token burns do not mean that the price of tokens will definitely go up but they can change the way the market works. Token burns can make a difference, in the market for tokens.
The spot market data shows something. It looks like people are taking tokens out of exchanges than they are putting in. For a days now more tokens have been leaving exchanges than coming in. This means that people who own tokens would rather keep them to themselves of leaving them on trading platforms. When there are not many tokens, on exchanges it is easier to buy them without the price going down. This happens because there is pressure to sell the tokens.
The Netflow data is really interesting because it shows that about five million dollars is flowing out. This tells us that the supply of something, on the market is getting smaller. When you have supply and people still want to buy things it can help the market go back up if the buyers keep buying. The Netflow data is important here because it gives us an idea of what's happening with the supply.
Things are looking up for momentum indicators. For the time in more than two weeks momentum indicators show that people who want to buy something are more active than people who want to sell. The average movement of people who think things will get better is going up. The movement of people who think things will get worse is going down. This change shows that more people are getting interested, in buying momentum indicators even though there are still some people who want to sell momentum indicators. Momentum indicators are getting attention from buyers.
If people who want to buy HYPE keep stepping in and the demand for HYPE gets better HYPE could go up to around thirty dollars first. If things keep going and people start to feel more confident about HYPE it is possible that HYPE could move towards forty dollars. The bad situation with HYPE has gotten a little better. The price of HYPE still depends on people keeping up their demand, for HYPE.
There is still a risk with this. If the effect of the burn starts to wear off and buyers are not interested in it anymore the price of it could go down again. If the price goes below twenty dollars it could get as low, as nineteen dollars.
For now the market shows early signs of balance returning. The token burn reduced supply and helped calm sentiment. Whether this is enough to fuel a full recovery depends on buyers staying active and confident in the days ahead.
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Hyperliquid’s native token HYPE has gone through a turbulent phase after peaking near $50 almost two months ago, followed by a sustained increase in selling pressure. Since that high, HYPE has been trading within a descending channel, eventually printing a local bottom around $22.
At the time of writing, HYPE is trading at $23.94, down 1.39% on the day and nearly 12% over the past week, highlighting the intensity of the current bearish pressure. This prolonged weakness has forced the Hyperliquid ecosystem to take decisive action in an attempt to stabilize the token’s value.
Hyper Foundation Burns 37 Million HYPE Tokens
In a major intervention, the Hyper Foundation approved the burn of 37 million HYPE tokens following a governance vote that received 85% approval based on staked voting power. The burned tokens—valued at over $912 million—were permanently sent to an inaccessible address, effectively removing them from circulation.
Since December 2024, the Hyper Foundation has consistently executed HYPE buybacks, increasing its total holdings from 9.3 million to 37.51 million tokens. On average, the foundation has spent approximately $1.5 million per day repurchasing HYPE. Over the past week alone, it deployed $12.4 million to acquire an additional 498,340 tokens.
This aggressive deflationary strategy aims to absorb selling pressure, reduce circulating supply, and restore market confidence. Historically, token burns and sustained buybacks tend to support price stability—especially when combined with improving demand-side metrics.
Spot Market Activity Shows Early Signs of Strength
Despite continued price weakness, spot market data is beginning to show encouraging signals. Over recent days, HYPE withdrawals from exchanges have consistently exceeded deposits, resulting in a positive spot flow trend.
At the time of reporting, net spot outflows reached approximately $5.1 million, indicating that holders are moving tokens off exchanges rather than preparing to sell. Typically, declining exchange balances reduce immediate sell-side pressure, creating a more favorable environment for price recovery.
This shift suggests that some market participants may be positioning for a medium-term rebound rather than capitulating at current levels.
Is a Strong Recovery Still Possible?
According to analysis by CoinPhoton, the token burn appears to have improved market sentiment, as reflected in momentum indicators such as the Average Bullish Move. For the first time in over two weeks, buying pressure has overtaken selling pressure, with the Average Bullish Move rising to 17, while the Bearish Move has declined to -9.
This shift implies that buyers are gradually regaining control, even though residual selling pressure remains. If this positive momentum persists, HYPE could realistically reclaim the $30 psychological level, with a potential medium-term extension toward $40.
However, risks remain. Should the deflationary measures fail to sustain demand, HYPE could lose its $20 support, opening the door for a deeper retracement toward $19.
Final Outlook
The $912 million token burn represents one of the most aggressive supply-side interventions in recent DeFi history. While it has not yet reversed the broader downtrend, early signs from spot flows and momentum indicators suggest that market sentiment is stabilizing.
Whether HYPE can reach $40 will ultimately depend on the sustainability of demand—not just reduced supply.
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