Jakarta, Pintu News – A crypto asset manager proposed reducing Hyperliquid (HYPE) supply by 45% to increase scarcity. At the same time, a crypto analyst predicted that HYPE prices could reach triple-digit figures before the end of the year.
DBA Asset Management proposed a plan to cut HYPE’s total supply by more than 45%. Jon Charbonneau, investment manager at the firm, shared this proposal through a structured post on X.
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The proposed move includes burning all unminted tokens allocated for future issuance as well as community rewards, while removing holdings from Hyperliquid’s relief fund. If approved, this policy will permanently remove hundreds of millions of tokens from circulation.
Proponents argue that this change will make Hyperliquid’s valuation more transparent and attractive to investors.
Meanwhile, critics of the current reporting standards argue that tokens that are authorized but not used undermine the credibility of the project. Compared to its competitors, this may lead to mispricing.
By tidying up the balance sheet, the proposal aims to align the protocol economy with real market activity.
The proposed supply cut comes as HYPE has been one of the best-performing tokens this year. The token set a new record high above $58, up 1,200% compared to its end-2024 level.
Analysts believe this spike was triggered by increased use of the protocol as well as expectations that the supply restriction measures would push prices higher.
Interestingly, the platform continues to dominate decentralized derivatives trading activity despite growing competition. Rival exchange Aster surged 1,500% recently, with a total locked value of nearly $870 million and monthly perpetual volume of over $17 billion. However, Hyperliquid still leads in open interest and overall trading momentum.
However, not everyone agrees with the proposed supply cut. One community member, Tobias Reisner, believes that the platform already has an effective burn mechanism related to real usage, such as trading fees.
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In a recent post on X, a crypto analyst named CryptoFrog said that HYPE’s ability to stay on the main trend line despite facing competition shows the strong belief of its holders.
He predicts the token could potentially break $100 by the end of the fourth quarter if momentum continues.
Currently, HYPE is consolidating around $48 after experiencing a correction from its highs. Recent selling pressure has also come into play, for example the large sale by Arthur Hayes, co-founder of BitMEX, worth around $5.1 million in HYPE.
Even so, the altcoin still holds great growth potential thanks to its increasing ecosystem adoption. Last week, MetaMask announced plans to integrate Hyperliquid perpetual trading directly into its wallet. This will allow users to deposit USDC and trade directly through the app.
Along with these developments, the Hyperliquid platform is experiencing rapid growth in the decentralized derivatives sector. If the 45% supply cut plan is approved, the token has a chance to reach its $100 target by the last quarter of 2025.
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