Hyperliquid Burns $1.2M in HYPE Tokens Amid Weak Momentum

Hyperliquid (HYPE) has been using deflationary mechanisms to control its supply and absorb market pressure. The protocol's revenue has been used for token buybacks and burns, with a significant portion of the funds generated going toward these measures.

In August 2025, Hyperliquid generated $800 million in net income, with 95% coming from HyperCore. Of the $1.03 billion generated, $1.01 billion was spent on buybacks and burns.

Recently, Hyperliquid burned $1.2 million worth of HYPE, which accounts for 4.73% of the token's supply. This move has helped stabilize the HYPE token, keeping it strong even during a prolonged period of market weakness.

While the sustained capital deployment toward deflationary measures has been effective in boosting investor confidence and buyer interest, the momentum remains weak. The RSI Momentum Trend indicator sits above the market price, suggesting that sellers still have control over the market.