Hyperliquid burned around $1.75 million worth of HYPE tokens within 24 hours, maintaining its ongoing process of cutting the total supply through buybacks funded by the platform’s earnings. Based on reports from Onchain Lens, Hyperliquid bought and burned 21,790 HYPE tokens for an average cost of $80.27. On the other hand, crypto expert Crypto Warrior spotted signs of a recovery for the HYPE price after the recent sell-off, heading towards $94.
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Hyperliquid’s Latest Buyback Removes 21,790 HYPE
Hyperliquid bought and burned 21,790 HYPE tokens within the reported 24 hours at the average cost of $80.27 per HYPE. Thus, this is about $1.75 million worth of tokens that were burned out of circulation.
This new burn brings the total reported number of lifetime token burns to 49.69 million HYPE, worth around $4.05 billion. This is equivalent to 4.97% of the maximum HYPE token supply of 1 billion tokens.
Source: Onchain Lens’ X Post
The Hype Buyback model ensures that there is a direct relationship between the activities on the Hyperliquid protocol and its token economics. The income that goes to the Assistance Fund is used in buying HYPE tokens in the open market, which are then burned.
However, just reducing supply cannot ensure that prices rise. The performance of HYPE in the market will depend on other factors such as demand for HYPE, market dynamics in cryptocurrencies, and supply of new tokens.
Also Read: Grayscale Buys $7.8M in HYPE as HYPE Price Eyes $88 Amid Network Growth
Hyperliquid’s $1.65M in Daily Fees Highlights Revenue Activity
Onchain Lens also provided an estimate of 24-hour fees worth $1.65 million. This amount shows the activity within the protocol surrounding Hyperliquid’s token buybacks and burns.
The recorded burn amount is higher than the expected fees during the specified period. This discrepancy does not mean that purchases are higher than the earning potential of the protocol within the same accounting period. Funded buybacks may come from the balance in the funds, and the buying process may be different from fee expectations.
For HYPE token owners, what will determine success is the ability of Hyperliquid to have enough trading volume and earn money for further buys. Usage of the protocol will secure the buyback function and will result in the reduction of the coin’s supply.
But traders should separate protocol fundamentals from short-term price action. High levels of buybacks can occur alongside decreasing price of the token if there is more sell pressure than market demand.
HYPE Recovery Faces a Key Test After Selling Pressure
Crypto analyst Crypto Warrior has noticed early signals that indicate a recovery in the HYPE price after its recent decline. The analyst believes that further strength can help take the HYPE price to the $94 level if the current trend continues.
The future will depend on buyers remaining in control and setting up better price levels. Better volume performance and making higher lows will serve as extra confirmation that buyers have returned.
Source: Crypto Warrior’s X Post
While the average price of $80.27 paid during the buybacks provides background information on Hyperliquid’s buyback activity, it does not necessarily translate into technical support. The traders would have to determine support and resistance levels by examining past price movements and market participation.
A sustained recovery would add weight to the analyst’s argument for $94 being his target. On the other hand, renewed selling pressure or lack of momentum could undermine the bullish setup.
What Comes Next for the HYPE Price?
The future buybacks of Hyperliquid and the fees collected by it will be useful for traders to evaluate if the tokenization mechanism of Hyperliquid based on its revenues is operational. Trading in the future can have an impact on how fast the future buybacks will occur.
The market players will also have to watch out for token supply updates and general sentiments around cryptocurrencies. With the increase in token supply in the market, it will balance the effect of the burn process that is taking place.
The new burn by Hyperliquid makes the call for more supply reduction very valid, although the HYPE price trajectory will still depend on market dynamics. $94 may be a possibility, but it is not yet certain, as there is a need for persistent buying pressure and improved technical formation.
Also Read: Hyperliquid Revenue Growth Draws Attention as HYPE Price Outlook Evolves
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
