Hyperliquid [HYPE] Deflationary mechanism has been deployed historically in order to control the supply and absorb market tension. In order to reach these goals, most of the revenue from protocol tokens has been used for token purchases and burning.
Hyperliquid consumes $1.2M worth of HYPE
With HYPE prolonging its stay below $60, the project once again used its revenue to reduce inflation. HyperCore has been responsible for 95% (800 millions) of all the net profits generated by the Hyperliquid Network since August 2025.
Even more interesting, the vast majority of money generated has been used to buy back tokens. From the $1.03 billion raised, $1.01 has gone to buybacks or burns.
The past 24 hours, as an example Hyperliquid The fees generated by the HYPE were worth $1,4 million and 20.64K units of HYPE was worth $1,2 million. The capital expenditure here, however, has fallen significantly by 61%, even with the burnbacks.
Hyperliquid, according to their data, has burnt 4.73% (or a total of 4.8 million tokens) in the last few days. Onchain Lens. This represents over 15 percent of the current stock.
The capital deployed to implement deflationary policies has helped stabilize the HYPE token. HYPE token has remained stable even through a period of prolonged market weakness.
But is the demand actually incentivized?
The sustained deployment of capital to reduce pressure played an important role in increasing investor confidence. Due to this, investors have continued buying even when the market has been in a slump.
The Netflow on the Spot has been positive for the past two weeks. The Netflow at the moment is $598k. That’s a big drop compared to -$3.2m on day one, reflecting strong purchasing pressure.
In the past, major price movements, particularly upward, have been preceded by sustained outflows of foreign exchange.
Momentum is still weak
The demand is strong but not enough to turn the trend upwards. The RSI Momentum Trend is actually above the price of the market when viewed in this way.
This setup suggests the seller still has significant control over the market. As a result, this indicator acts now as dynamic support.
Squeeze Momentum Indicator, which is currently below zero (around -7.69), confirms that the trend has weakened. The price is still on an uptrend, but it needs to flip the RSI Momentum Trend in order for a reversal.
Hyperliquid will need to close daily above $60 for the trend to be strengthened. If you fail to act, your downside risk increases and HYPE could pull back towards $56.
Final summary
- Hyperliquid The fees generated by the HYPE were worth $1,4 million and 20.64K units of HYPE was worth $1.2 Million.
- HYPE continues to grow despite recovering consumer demand. However, a close daily above $60 signals a trend reversal.
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Source: ambcrypto.com
