HYPE Token Surges 14% as Hyperliquid Burns Near 50M Tokens

HYPE token rallied sharply on Oct. 29 as tracking data placed Hyperliquid’s cumulative recognized burns near 49.87 million tokens. The advance highlighted interest in the exchange’s fee-funded buyback mechanism.

The cryptocurrency climbed above $90 after spending several days around $75–$82. However, technical readings also suggested heightened short-term volatility.

Hyperliquid Burns 4.99% of HYPE Token’s Maximum Supply Worth $3.89 Billion

The latest update pushed cumulative burns from 49.69 million to 49.87 million HYPE price. That equals 4.99% of the 1 billion HYPE cap.

In the past 24 hours alone, about 19,700 HYPE worth $1.59 million were burned. Estimated protocol fees for the same window came in at $1.69 million.

The $3.89 billion number needs context. It measures today’s market value of the burned tokens, and Hyperliquid paid far less to acquire them.

By October 13, the Assistance Fund had reportedly spent between $1.36 billion and $1.37 billion buying more than 48 million HYPE. The gap tells you how far the HYPE token has climbed since many of those purchases were made.

How the Hyperliquid Crypto Buyback Engine Works

Hyperliquid runs a decentralized perpetual futures exchange. Traders pay fees on their positions, and 99% of those fees now flow to the Assistance Fund.

The share rose from 97% after a change announced on August 26, 2025, and the SEC filing confirmed the 99% allocation.

The fund uses that money to buy HYPE on the open market. Tokens sent for permanent removal leave the supply for good.

The result is steady buying pressure tied to real exchange activity, with no reliance on a one-off burn event.

In October, the Hyperliquid crypto treasury picked up a second funding stream. About $14.6 million in yield from USDC reserves under the AQAv2 framework was reportedly directed toward HYPE buybacks.

Daily burn sizes swing a lot. Reported figures ranged from 10,400 HYPE on September 26 to 112,580 HYPE on October 5. That larger figure still deserves an independent on-chain check.

HYPE Token Price Analysis: Can Token Burns Sustain the Jump Above $80?

On the 1-hour HYPE/USDT chart, a run of green candles broke the token out of its $75 to $82 range and carried it through $85 toward $92. The recent high of $92.15 is now the immediate resistance.

Volume backs the move. The histogram shows a cluster of unusually large green bars during the breakout.

Open interest also jumped to roughly 4.74 million, which means new derivatives positions are entering the market.

RSI is the warning light. The three readings sit at about 94.81, 87.01 and 78.79, all well above the 70 overbought line.

A reading near 95 often comes before a cooling-off period, but strong trends can keep RSI high for a while. Burns help the supply picture, but they rarely decide the next few hours of price action.

HYPE Price Prediction: Can Protocol Revenue and Buybacks Support a Recovery?

Hyperliquid’s cumulative protocol revenue stands at about $1.38 billion, after reportedly passing $1 billion around June 30. As long as traders keep using the exchange, the fund keeps buying.

In the bullish case, HYPE breaks above $92.15 on strong volume and holds $90 on any retest. That would open room for fresh price discovery and a new local high.

In the bearish case, a rejection at $92.15 drags the HYPE token back below $90, with $85 as the first level to watch. A deeper pullback could bring the old $80 to $82 consolidation zone back into play, and $74.45 stands as the major swing low on the chart.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency trading carries substantial volatility and potential losses. Readers should conduct independent research before investing.