Hyperliquid [HYPE] has historically deployed deflationary mechanisms to control supply and absorb market pressure. The project has mostly used the protocol’s revenue for token buybacks and burns to achieve these goals.
Hyperliquid burns $1.2 million worth of HYPE
With HYPE prolonging its stay below $60, the project once again used its revenue to reduce inflation. Since August 2025, the Hyperliquid network has generated $800 million in net income, with HyperCore accounting for 95% of the income.
Interestingly, most of the funds generated have been spent on token buybacks. Out of the $1.03 billion generated, $1.01 billion has been used for buybacks and burns.
Over the past day, for example, Hyperliquid generated $1.4 million in fees and burned 20.64K HYPE worth $1.2 million. However, despite the buyback and burns, the capital spent here has plummeted significantly, falling 61%.
With the recent burn, Hyperliquid has burned 4.73% of the token’s supply according to Onchain Lens. This also marks over 15% of the currently circulating supply.
The sustained capital deployment toward deflationary measures has gone a long way toward stabilizing the HYPE token. As a result, HYPE has remained strong even during a prolonged period of broader market weakness.
Is actual demand incentivized, though?
Sustained capital deployment to ease pressure has significantly played a major role in boosting investor confidence. As a result, buyers have continued to pile in even during pullbacks.
On the Spot side, for example, the Netflow has remained positive for two consecutive weeks. As of this writing, Netflow was -$598k, a significant drop from -$3.2 million the previous day, reflecting strong buying pressure.
Historically, sustained exchange outflows have preceded major price moves, especially to the upside.
The momentum remains weak
Although the demand currently holds strong, it remains insufficient to flip the trend bullish. In fact, when we look at the RSI Momentum Trend, this indicator sits above the market price.
Such a setup usually suggests that sellers still have significant control of the market. As such, the indicator now acts as dynamic resistance.
The Squeeze Momentum Indicator also currently sits below zero, at around -7.69, further confirming the trend’s weakness. However, the price remains on an upward trajectory; it must flip the RSI Momentum Trend to signal a reversal.
This means Hyperliquid needs a daily close above $60 to strengthen the uptrend. Failure to do so will increase downside risk, and HYPE will pull back toward $56 again.
Final Summary
- Hyperliquid generated $1.4 million in fees and burned 20.64K HYPE worth $1.2 million.
- HYPE’s momentum remains strong despite recovering demand, but a daily close above $60 will signal a trend reversal.
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