HYPE recently rose to approximately $73, continuing to set new all-time highs. Market focus is not only on the price itself, but also on the supply contraction and platform revenue growth behind Hyperliquid. As spot ETFs continue to absorb circulating tokens, the number of tradable tokens in the market is further reduced, driving this upward trend.
ETFs continue to absorb circulating tokens
The report, citing market data, states that the spot Hyperliquid ETFs launched by 21Shares and Bitwise together hold nearly 0.49% of the circulating supply of HYPE. Based on this calculation, approximately one in every 200 circulating HYPE tokens is locked in ETF products.
The related products manage approximately $137 million in assets and continue to attract inflows since their launch. For the market, this means a further withdrawal of circulating tokens from the secondary market, while demand has not weakened accordingly.
- Spot ETF holdings are close to 0.49% of the outstanding amount.
- The ETF manages approximately $137 million in assets.
- Tightening liquidity has become a key support for the recent rise.
Buybacks and destructions reinforce supply contraction
In addition to ETF absorption, Hyperliquid's token mechanism is also reinforcing supply contraction. The report mentions that nearly 98% of the protocol's transaction fees are used for HYPE buybacks and burns, making it one of the projects with the highest buyback rates among mainstream crypto protocols.
The key feature of this mechanism is that the more active the platform's trading, the larger the buyback volume typically becomes. In other words, the increase in protocol usage directly translates into sustained buying of tokens, rather than just remaining at the narrative level.
The report also mentioned that the Hyperliquid ecosystem currently generates nearly $1 billion in annualized transaction fees. If this level can be maintained, the market's pricing logic for HYPE will be more inclined towards platform revenue and trading activity, rather than simply relying on sentiment.
The narrative of platform valuation is changing.
As this round of price increases continues, HYPE's market capitalization has surpassed Dogecoin's. The report suggests this reflects a reassessment of crypto asset pricing standards by some investors, placing greater emphasis on quantifiable platform activity, derivatives trading volume, and protocol revenue, rather than just community buzz.
Against this backdrop, Hyperliquid is gradually being viewed not just as a niche project, but also as a target for broader institutional investment. Especially with expectations of improved regulation of perpetual contracts in the US, the long-term potential of decentralized derivatives platforms is once again attracting attention.
Prices enter a new discovery range
With HYPE repeatedly hitting new highs, historical resistance levels are relatively limited. The report cites analyst Ali Martinez as saying that previous bearish sell signals have become invalid after the latest breakout, and market momentum remains bullish.
The analyst's next target prices on a 3-day timeframe are $97 and $163. However, this is the analyst's judgment and not a confirmed market outcome.
Based on the report, HYPE has not experienced significant and sustained selling pressure at recent high levels, and prices have recovered quickly after profit-taking. This performance typically indicates that new demand is still absorbing market selling pressure, and short-term pullbacks are more likely to be seen as consolidation rather than a trend reversal.
