Hyperliquid’s $10.15M Token Burn Boosts HYPE to $93
Hyperliquid recently made a significant move in its efforts to reduce the supply of its native token, HYPE. On October 3, the protocol distributed its first interest accrued since activating the AQAv2 framework in August. This framework allows 90% of the interest earned on idle USDC to be returned to the protocol, with yields accrued every 30 days and automatically routed to the Assistance Fund after eight days.
The protocol received $14.5 million in USDC, which was then used for one of its largest token burns to date. According to Onchain Lens, Hyperliquid bought and burned 112.58K HYPE tokens worth $10.15 million. The remaining $4.4 million in funds will be used for additional buybacks and burns, as all funds are dedicated to open-market buybacks and permanent burns.
The market responded positively to this deflationary milestone. HYPE flipped the $91 resistance and rose to $93.7, clearing earlier losses in October. At press time, the token traded around $93.4, up 3.5% on the daily charts, with a 52% increase in trading volume. Technical indicators, such as the Relative Strength Index (RSI) and Relative Vigor Index (RVGI), formed bullish crossovers, suggesting that bulls were regaining control.
Despite the bullish momentum, the market faces challenges. A surge in exchange inflows, with Spot netflow rising to $4.3 million on October 5, could pose pressure. If the market fails to absorb this pressure, HYPE could drop to $91, with $86 serving as support. However, if the upward momentum holds, the token could target $98, potentially moving towards $100.