HYPE, the native token of the decentralized perpetual futures exchange Hyperliquid, rallied more than 14% on Oct. 29 as on-chain tracking data placed the platform's cumulative recognized token burns near 49.87 million HYPE. The advance, which carried the token above $90 after several days spent in the $75–$82 range, highlighted continued interest in the exchange's fee-funded buyback mechanism, even as technical readings pointed to heightened short-term volatility.

Burns Reach 4.99% of Maximum Supply, Valued at $3.89 Billion

The latest update lifted cumulative recognized burns from 49.69 million to 49.87 million HYPE, according to tracking data from Coinank. That figure represents 4.99% of the token's 1 billion maximum supply cap, with an estimated market value of roughly $3.89 billion.

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

The $3.89 billion figure requires context: it measures the current market value of the burned tokens, and Hyperliquid paid considerably less to acquire them. By Oct. 13, the Assistance Fund had reportedly spent between $1.36 billion and $1.37 billion purchasing more than 48 million HYPE. The gap between that spending and today's valuation illustrates how far the HYPE token has climbed since many of those purchases were made.

How the Hyperliquid Buyback Engine Works

Hyperliquid operates a decentralized perpetual futures exchange in which traders pay fees on their positions. Following a change announced on Aug. 26, 2025, 99% of those fees now flow to the Assistance Fund, up from a previous 97% allocation, with an SEC filing confirming the 99% share.

The fund uses that revenue to buy HYPE on the open market, and tokens designated for permanent removal are taken out of supply for good. The result is steady buying pressure tied to real exchange activity, without reliance on a one-off burn event. Fee-funded buybacks of this kind have become an increasingly common value-accrual model across decentralized finance, connecting token demand to actual platform usage.

In October, the Hyperliquid treasury added 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 volumes fluctuate considerably. Reported figures have ranged from 10,400 HYPE on Sept. 26 to 112,580 HYPE on Oct. 5, though the larger figure still warrants independent on-chain verification.

Technical Picture: Breakout Meets Overbought Conditions

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 now stands as the immediate resistance level.

Volume has supported the move, with the histogram showing a cluster of unusually large green bars during the breakout. Open interest also jumped to roughly 4.74 million, indicating that new derivatives positions are entering the market. Higher open interest reflects greater leveraged exposure, a condition that can magnify volatility in either direction.

The Relative Strength Index, however, is flashing a warning. Three hourly readings sit at approximately 94.81, 87.01 and 78.79, all well above the 70 overbought line. A reading near 95 often precedes a cooling-off period, although strong trends can sustain elevated RSI levels for extended stretches. Token burns improve the supply picture, but they rarely determine the next few hours of price action.

Protocol Revenue Backdrop and Key Levels to Watch

Hyperliquid's cumulative protocol revenue stands at about $1.38 billion, after reportedly passing the $1 billion mark around June 30. As long as traders continue using the exchange, the fund keeps buying. For readers following the mechanism, the daily burn updates published by trackers like Coinank, along with future Assistance Fund purchase disclosures, offer a recurring on-chain measure of how much fee revenue is flowing into the buyback.

In a bullish scenario, HYPE would break above $92.15 on strong volume and hold $90 on any retest, opening room for fresh price discovery and a new local high. In a bearish scenario, a rejection at $92.15 would drag the token back below $90, with $85 as the first level to watch. A deeper pullback could bring the prior $80 to $82 consolidation zone back into play, while $74.45 stands as the major swing low on the chart.

Disclaimer

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

This article originally appeared on The Market Periodical.