Hyperliquid’s governance is facing a pivotal moment after a proposal surfaced that would wipe out nearly half of the token’s authorized supply.
The suggestion, put forward by DBA Asset Management, would see unissued HYPE tokens and certain reserve holdings permanently removed from circulation in an effort to tighten supply and strengthen market confidence.
Supporters say the plan would simplify token economics and remove doubts about unused allocations that often hang over valuation. Detractors, however, counter that Hyperliquid already runs efficient burn mechanisms tied to platform usage and that an additional reduction could be redundant.
The discussion comes on the back of an explosive year for HYPE. The token has surged more than 1,000% since late 2024, briefly crossing $58 before pulling back to the high $40s. While some selling pressure has emerged—including a multi-million dollar sale by BitMEX co-founder Arthur Hayes—the project continues to dominate decentralized derivatives trading, where its closest rival Aster has only recently begun to close the gap.
Momentum is also being fueled by ecosystem expansion. MetaMask recently announced it will integrate Hyperliquid perpetuals into its wallet, allowing direct trading with USDC deposits. Analysts point to such developments, along with the potential supply overhaul, as catalysts for the next leg higher.
One market watcher, CryptoFrog, argued that HYPE’s ability to hold key levels despite competition shows strong conviction among holders. He projected the token could climb toward $100 by year’s end if demand continues to grow and the supply plan gains approval.
Whether or not the proposal passes, Hyperliquid has secured its position as one of DeFi’s most watched platforms in 2025, with investors now closely tracking both governance decisions and price action into the final quarter.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/hyperliquid-debates-supply-cut-as-analysts-eye-100-hype/