The HYPE token of Hyperliquid has experienced highly volatile moments when the price hit the $50 level nearly two months ago, amid increasing selling pressure in the market. Since then, HYPE has continuously traded in a downtrend channel, recording a local bottom at $22.
As of now, the HYPE price is trading at $23,942, down 1.39% for the day and 11.9% for the week, reflecting strong selling pressure from the market.
In response to this situation, Hyper Foundation has had to intervene to support the HYPE value.
Hyper Foundation burns 37 million HYPE
In a notable effort, Hyper Foundation has burned 37 million HYPE tokens after receiving 85% approval from governance voting based on staking weight. This amount of tokens, valued at over $912 million, has been confirmed to be burned and transferred to an inaccessible address, officially removing them from circulating supply.
Since December 2024, Hyper Foundation has continuously carried out HYPE token buybacks, increasing its holdings from 9.3 million to 37.51 million tokens. On average, the fund spends about $1.5 million daily to buy back tokens; just last week, they spent $12.4 million to accumulate an additional 498,340 tokens.
Source: ASXN The burning of this large amount of tokens has helped reduce the total circulating supply by 11%-13%, tightening the tokenomics structure and increasing scarcity for HYPE.
Source: ASXN This move is expected to reduce selling pressure, absorb market sell-offs, and lay the groundwork for a price rebound. History shows that deflationary measures often have a positive impact on token prices.
Spot market shows positive signals
Although HYPE is under pressure, activity in the spot market indicates signs of improvement. Recently, the amount of HYPE withdrawals from exchanges has consistently exceeded deposits, keeping the spot cash flow in positive territory. At the time of reporting, the cash flow stands at -$5.1 million, reflecting strong outflows.
Source: CoinGlass Usually, when deposits into exchanges decrease, selling pressure on the asset also diminishes, opening opportunities for an upward trend.
Can HYPE recover strongly?
According to analysis by Coinphoton, the token burn has helped soothe market sentiment, as reflected in the Average Bullish Move index. For the first time in over two weeks, buying pressure has surpassed selling pressure, with an average Uptrend Index of 17, while the Bearish Move index has decreased to -9.
Source: TradingView The current market structure shows that buying momentum is dominant, although selling still exists. If this trend continues, HYPE has a strong chance to recover, regain the $30 level, and target $40.
Conversely, if the deflationary measures are not strong enough, HYPE could lose the $20 support level and continue declining toward $19.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin faces short-term pressure approaching $70,000 ahead of US CPI data release
On March 11, Bitcoin price dropped over 2% due to market cautiousness. Economists expect US CPI data to be slightly higher than last month, although this data does not reflect the impact of rising oil prices, and Bitcoin's short-term response may remain stable. Tensions in the Middle East could lead to increased safe-haven demand. The market should pay attention to changes in key support and resistance levels to prepare for potential volatility.
GateNews16m ago
Arthur Hayes warns: Bitcoin may dip below $60,000 in the short term, but still has the potential to reach $500,000 in the long term
Cryptocurrency industry executive Arthur Hayes warns that Bitcoin may experience a short-term pullback to $60,000, but remains optimistic about its long-term potential, expecting the price to reach $500,000 to $750,000 by the end of 2026. He emphasizes that geopolitical tensions and high interest rates will influence BTC's movement, and investors should be cautious in responding to short-term fluctuations.
GateNews23m ago
Ethereum Price News: Network Activity Hits Record High, Why Is ETH Price Still Under Pressure?
Ethereum network activity hits a record high, but prices have not kept pace, with daily active addresses approaching 2 million. Capital flow has become the main driving force, with inflows to trading platforms surpassing Bitcoin. Although ETH accounts for 52% of stablecoin supply, the market remains focused on capital movement. It is expected that by 2026, ETH prices could rebound to $3,000.
GateNews24m ago
Stablecoin Wave, "AI Proxy Finance" Assists! Bernstein Optimistic About Circle's Stock Price Soaring Another 60%
The stock price of stablecoin USDC issuer Circle has recently risen, and Bernstein reports predict it could increase another 60% in the future, with a target price of $190. The growing demand for stablecoins and the rise of AI-powered financial applications are the main driving factors. Circle's stock price has increased over 100% in the past few weeks and continues to expand its payment network, indicating that the application scope of stablecoins is expanding. Additionally, stablecoin trading volume has grown significantly, showing deeper integration with traditional finance.
区块客30m ago
Market fluctuations triggered by the Iran conflict, XRP outperforms gold, silver, and the S&P 500
Since the conflict between Israel and Iran, XRP has outperformed traditional safe-haven assets, rebounding to $1.40 with an increase of approximately 2.22%. In comparison, gold and silver have seen limited gains, while the S&P 500 index declined by 1.1%. XRP's resilience is attributed to the overall recovery of the crypto market, demonstrating the potential value of digital assets during times of risk.
GateNews31m ago
Is this the perfect buying point for Bitcoin? PlanB updates the S2F model: the average price in this cycle is expected to reach $500,000
Quantitative analyst PlanB has made a new Bitcoin forecast, estimating that the average price from 2024 to 2028 will reach $500,000, based on its S2F model. The model calculates scarcity through asset stock and annual production, indicating that the market is currently entering a buying opportunity. PlanB emphasizes the historical accuracy of the forecast but also acknowledges the model's blind spots and the need to pay attention to market demand changes.
区块客36m ago
