Hyperliquid Burns 32.77K HYPE as TVL Nears $7B

Hyperliquid's token burning mechanism continues to reduce HYPE supply as the protocol's total value locked (TVL) approaches $7 billion. The latest burn, which occurred recently, removed 32.77K HYPE tokens from circulation, bringing the total lifetime burns to 48.57 million HYPE and approximately $3.82 billion using the current price valuation.

The token burning mechanism has been strengthened by the growing activity on the protocol, particularly in September when TVL surged towards its highest level. The daily fees generated by the protocol have also reached several million dollars, with occasional spikes exceeding normal levels.

However, while the burn mechanism is being fueled by sustained platform usage and revenue generation, a supply squeeze alone may not guarantee an immediate price appreciation for HYPE tokens.

The current derivatives market positioning suggests that long positions have reclaimed some ground, but the renewed exposure has not yet reached aggressive levels seen in late August. A sustained positive funding rate could support demand outlook, but another move below zero would indicate short-side pressure.