Key Highlights
- HYPE is rising by less than 1% and is trading at $27 per coin.
- The coin could recover the psychological $30 level as plans to burn the assistance fund are underway.
Hyperliquid Plans to Burn Assistance Fund Tokens
In a notable development within the cryptocurrency sphere, HYPE, the native token of the Hyperliquid decentralized exchange (DEX), has experienced a modest increase of less than 1% in the past 24 hours. This uptick positions HYPE among the better performers among the top 20 cryptocurrencies by market capitalization.
This positive trend is particularly noteworthy as major cryptocurrencies such as Bitcoin, XRP, and Ethereum are all trading in the negative. The Hyperliquid Foundation’s recent announcement regarding its intention to permanently pull 37.11 million HYPE tokens, representing 3.71% of the total supply, further underpins this rise.
The Hyper Foundation is proposing a validation vote to formally recognize the HYPE from the Assistance Fund as burned, permanently removing tokens from circulation and the total supply.
For context, the Assistance Fund automatically converts trading fees into HYPE as part of…
— Hyper Foundation (@HyperFND) December 17, 2025
The tokens are currently held in the Assistance Fund address, which automatically converts trading fees collected by the platform into HYPE. The team indicated that a lack of private key access meant that this address was never controlled, necessitating a hard fork to access these funds. Should the community approve the ongoing voting proposal, a social consensus would be established no protocol updates would be required to access this address.
Moreover, derivative data signifies a bullish sentiment among traders concerning HYPE. CoinGlass reports an increase in Open Interest (OI) of 1.63% over the last 24 hours, reaching $1.53 billion, reflecting a rise in the nominal value of active positions.
The growing weighted average funding rate OI for HYPE at 0.0839% indicates increased buying pressure, adding to the optimism among bulls.
HYPE Primed for Potential Rally Towards $30
The HYPE/USD four-hour chart presents a bearish outlook, having lost 4% in value over the past week. As of publication, HYPE is trading above a crucial support level of $26.
Significantly, news regarding the anticipated token burn has yet to be factored into the current price, suggesting a potential price surge for HYPE in the upcoming days.
However, if the daily candle does not close above the $26 support level, HYPE might extend its decline toward the lows observed on October 10, close to $20.
The RSI currently sits at 40, below the neutral 50 but shows declining bearish momentum. The moving average convergence divergence (MACD) indicator and its signal line extend the bearish trend, suggesting that bearish traders have not yet relinquished control.
Conversely, should bulls continue to assert themselves and the daily close above $26 is achieved, HYPE could rebound towards a resistance level at $34.
