Hyperliquid’s $10.15M token burn sent HYPE to $93 – Here’s what’s next

Hyperliquid has significantly expanded its revenue sources. In August, the protocol activated the AQAv2 framework.

Under the agreement, 90% of the interest earned on idle USDC on the platform is returned to the protocol. As per the arrangement, the yield accrued on a 30-day cadence and was automatically routed to the Assistance Fund after eight days.

On the 3rd of October, the protocol distributed the first interest accrued since the August activation. Thus, the protocol received $14.5 million in USDC, which was then routed to the Assistance Fund.

Inasmuch, Hyperliquid made one of its largest token burns in the last 24 hours. Onchain Lens reported that Hyperliquid bought and burned 112.58K HYPE worth $10.15 million.

100% of these funds are dedicated to open-market buybacks and are then permanently burned.

Given this, the team spent $10.15 million on token buybacks and burns. With the purchase, the team still has $4.4 million in funds, which will also be spent on additional buybacks and burns.

What about the market reaction to the deflationary milestone?

Unsurprisingly, the market responded strongly to the above developments. HYPE finally flipped the $91 resistance and rose to $93.7, clearing losses made in October so far.

At press time, Hyperliquid traded around $93.4, up 3.5% on the daily charts. The altcoin’s volume also rose by 52%, reflecting newfound market interest.

With the price hike, the upside momentum has strengthened substantially. The altcoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 59.

Likewise, the Relative Vigor Index (RVGI) also formed a bullish crossover and rose to -0.08. The two crossovers indicated that bulls had started to retake the market.

Under these market conditions, Hyperliquid is well-positioned for further gains on the charts. If momentum holds, the altcoin could clear $94 resistance and target $98, paving the way for a move to $100.

However, the market is still facing a major challenge. Investors have rushed to the Spot market to cash out recent gains.

The Spot netflow rose to $4.3 million on the 5th of October. The rising exchange inflows present another source of pressure that the market must absorb.

Failure to do so could cause the attempted upward move to collapse, likely sending HYPE to $91, with $86 as support.

Final Summary

• Hyperliquid bought and burned 112.58K HYPE, worth $10.15 million, as the AQAv2 framework generated $14.5 million in revenue. 
• HYPE flipped the $91 resistance and rose to $93 amid renewed market interest.