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- Hyperliquid burned $1.28 million worth of HYPE in 24 hours after generating $1.65 million in fees.
- Cumulative burns have reached 47.53 million HYPE, while circulating turnover has fallen to 2.9%.
- HYPE faces a key $52-$55 support zone, with a successful defense potentially opening a path toward $60.
Hyperliquid’s HYPE token is showing signs of a tightening supply environment even as its price extends a short-term correction. The protocol burned about $1.28 million worth of HYPE over the past 24 hours after generating roughly $1.65 million in fees, adding to a broader deflationary trend.
The latest burn brings Hyperliquid’s cumulative token destruction to 47.53 million HYPE, valued at approximately $2.68 billion. The figures suggest that protocol revenue is increasingly translating into permanent reductions in the available token supply.
HYPE Supply Pressure Builds as Turnover Falls
Data highlighted in the recent market reports shows HYPE’s circulating turnover has dropped to a weekly average of 2.9%. That decline indicates that a smaller share of the circulating supply is changing hands compared with earlier periods.
The combination of revenue-funded burns and lower token turnover could create a more restrictive supply backdrop. If demand remains steady or increases, reduced availability can potentially provide longer-term support for the token.
However, the supply picture does not eliminate short-term risks. HYPE trading volume has flattened near $230 million after climbing for about a week. The slowdown may reflect traders becoming more cautious as they monitor the $54 area for potential support or rejection.
Technical Indicators Point to More Short-Term Volatility
HYPE’s daily chart also presents a mixed picture. Bollinger Bands have widened, signaling increased price volatility, while the token remains below its 20-day simple moving average.
The Stochastic RSI is around 86.21, keeping momentum indicators in an elevated zone and leaving room for additional short-term weakness. HYPE also retested the 20 SMA near $56.65 before recording consecutive bearish sessions.
That technical setup suggests the recent pullback may not be finished yet, despite the protocol’s improving supply fundamentals.
Can HYPE Reclaim $60?
The $54.22 area has emerged as an important level for bulls, with more than $1.53 million in liquidity reportedly clustered around it. The zone also sits within a daily market gap between approximately $52 and $55.
A retest of that area could allow HYPE to clear nearby liquidity and potentially establish a stronger base. If buyers successfully defend the demand zone, the token could regain upward momentum toward $60.
Also Read: Hyperliquid Beats Bybit With $5.25B Open Interest as Bitcoin Recovery Signals Strengthen
For now, HYPE presents a split outlook: improving token economics support the longer-term case, while technical indicators point to continued caution in the near term. The ability of bulls to defend the $52-$55 region could determine whether the correction becomes a temporary reset or develops into a deeper decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
