Sep 23, 2025
7 1
HYPE Faces 45% Supply Cut Proposal Amid Rival ASTER’s Market Surge
DBA Asset Management proposes a 45% reduction in Hyperliquid's HYPE token supply.
- The plan includes revoking unissued tokens for future emissions and community rewards, burning assets in the Assistance Fund, and removing the existing 1 billion supply cap.
- If approved, the supply would decrease by 421 million HYPE from community rewards and 21 million from the assistance fund.
- DBA believes this reduction will make HYPE more appealing to investors and stakers by addressing undervaluation concerns linked to the fully diluted valuation metric.
Community reactions are mixed:
- Supporters argue that the large community allocation acts as an undefined slush fund.
- Critics warn that cutting future emissions could harm growth potential.
HYPE hit a new high at $59.30 but fell to $46.08 due to selling pressure.
Competitive Landscape
- Aster's recent DeFi airdrop has fueled its growth, surpassing Hyperliquid in 24-hour DEX volume for three consecutive days.
- Aster's Total Value Locked (TVL) reached $1.39 billion shortly after launch.
HYPE Price Analysis
- HYPE is consolidating at $48.78, testing resistance at a 20-day moving average of $52.38 with support at $44.30.
- Early bearish signals appear in MACD and Balance of Power indicators.
- Reclaiming $52.38 could push prices above $60, while sustained trading below $44 risks further decline towards $40.
