Hyperliquidity (HYPE) has historically deployed deflationary mechanisms to control supply and absorb market pressure. The project primarily used protocol revenue for token redemption and burning to achieve these goals.
Hyperliquid burns $1.2 million from HYPE
As HYPE extends its stay below $60, the project has once again used its revenue to reduce inflation. Since August 2025, the Hyperliquide network has generated $800 million in net income, with HyperCore accounting for 95% of revenue.
Interestingly, most of the funds generated were spent on token buybacks. Of the $1.03 billion generated, $1.01 billion was used for buyouts and burns.
Over the past day, for example, Hyperliquide generated $1.4 million in fees and burned 20.64k HYPE worth $1.2 million. However, despite the buyouts and burns, the capital spent here has fallen significantly, falling by 61%.
With the recent burn, Hyperliquid burned 4.73% of the token supply according to Onchain Lens. This also represents more than 15% of the supply currently in circulation.
The sustained deployment of capital towards deflationary measures has greatly contributed to stabilizing the HYPE token. As a result, HYPE remained strong even during a prolonged period of widespread market weakness.
But is real demand incentivized?
Sustained deployment of capital to alleviate pressure has played a major role in boosting investor confidence. As a result, buyers continued to flock even during downturns.
On the Spot side for example, Netflow remained positive for two consecutive weeks. At the time of writing, Netflow was -$598,000, a significant decline from -$3.2 million the previous day, reflecting strong buying pressure.
Historically, sustained currency outflows have preceded significant price movements, particularly upwards.
Dynamics remain weak
Even if demand currently remains strong, it remains insufficient to reverse the upward trend. In fact, when we look at the RSI Momentum trend, this indicator is above the market price.
Such a setup generally suggests that sellers still exert significant control over the market. As such, the indicator now acts as dynamic resistance.
The Squeeze Momentum indicator is also currently below zero, at around -7.69, further confirming the weakness of the trend. However, the price remains on an upward trajectory; it must reverse the RSI Momentum trend to signal a reversal.
This means that Hyperliquid needs a daily close above $60 to strengthen the uptrend. Failure to do so will increase the downside risk and HYPE will pull back towards $56 again.
Final summary
- Hyperliquid generated $1.4 million in fees and burned 20.64k HYPE worth $1.2 million.
- HYPE momentum remains strong despite the recovery in demand, but a daily close above $60 will signal a trend reversal.
