Hyperliquid’s $10.15M Token Burn Propels HYPE to $93
Hyperliquid has expanded its revenue streams significantly, thanks to the activation of the AQAv2 framework in August. Under this agreement, 90% of the interest earned on idle USDC is returned to the protocol. The yield is accrued every 30 days and automatically routed to the Assistance Fund after eight days.
On October 3rd, Hyperliquid distributed its first interest accrued since the framework's activation, receiving $14.5 million in USDC. This led to one of the protocol's largest token burns, with 112.58K HYPE tokens worth $10.15 million being bought and burned. The remaining $4.4 million will be used for additional buybacks and burns.
The market responded positively to this deflationary milestone. HYPE flipped the $91 resistance and rose to $93.7, erasing October's losses. At press time, HYPE traded around $93.4, up 3.5% daily, with a 52% increase in trading volume. The Relative Strength Index (RSI) and Relative Vigor Index (RVGI) both formed bullish crossovers, indicating strong upward momentum.
Despite the bullish outlook, the market faces challenges. Investors are cashing out gains, leading to a Spot netflow of $4.3 million on October 5th. This could pressure the market, potentially sending HYPE back to $91 or even $86 if the upward move collapses.