Hyperliquid (HYPE) has historically used deflationary mechanisms to control supply and absorb market pressure. To achieve these goals, the project mostly used the protocol’s revenue for token buybacks and burns.
Hyperliquid burned $1.2 million worth of HYPE
With HYPE extending 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 revenue, with HyperCore accounting for 95% of revenue.
Interestingly, most of the funds obtained were spent on token buybacks. Of the $1.03 billion generated, $1.01 billion was used for buybacks and burns.
For example, the other day, hyperfluid It generated $1.4 million in fees and burned 20.64k HYPE worth $1.2 million. But despite the buybacks and burns, the capital spent here decreased significantly, falling by 61%.
With the latest burn, Hyperliquid burned 4.73% of its token supply. Lens On Chain. This also represents more than 15% of the supply currently in circulation.
Continued capital deployment towards deflationary measures has gone a long way towards stabilizing the HYPE token. As a result, HYPE has remained strong even during a prolonged period of broad market weakness.
Is real demand stimulated?
Continuous capital deployment to ease pressure has played an important role in boosting investor confidence. As a result, even during pullbacks, buyers continued to flock.
For example, on the Spot side, Netflow remained positive for two consecutive weeks. As of this writing, Netflow was at -$598K, a significant drop from -$3.2M the previous day; This reflects strong buying pressure.
Historically, sustained currency outflows have preceded large price movements, especially upwards.
Momentum remains weak
While demand currently remains strong, it remains insufficient to reverse the upward trend. In fact, when we look at the RSI Momentum Trend, this indicator is sitting above the market price.
Such a setup usually indicates that sellers still have significant control over the market. Therefore, the indicator now acts as dynamic resistance.
The Compression Momentum Indicator is also currently below zero, around -7.69, further confirming the weakness of the trend. However, the price continues its upward trend; To signal a reversal, the RSI must reverse the Momentum Trend.
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 towards $56.
Final Summary
- hyperfluid It generated $1.4 million in fees and burned 20.64k HYPE worth $1.2 million.
- HYPE’s momentum remains strong despite demand recovery, but a daily close above $60 would signal a trend reversal.
