Headline: Hyperliquid Proposes Permanent Burn of 37.11M HYPE as Traders Grow Bullish Hyperliquid’s native token HYPE is bucking the broader market slump, trading up marginally (under 1%) over the past 24 hours and ranking among the better performers in the top-20 crypto assets while Bitcoin, Ether and XRP sit in the red. What’s happening - The Hyperliquid Foundation has proposed a validator vote to formally recognize 37.11 million HYPE — about 3.71% of the token’s supply — as permanently burned. If approved, the move would remove those tokens from both the circulating and total supply. - Those tokens sit in the protocol’s “Assistance Fund” address, which automatically converts trading fees collected by the perpetual-focused exchange into HYPE. According to the team, the assistance fund address was never controlled via a private key, and a past hard fork was required to access funds related to it. The current proposal would create a social consensus that no future protocol upgrades should be used to access that address, effectively sealing the tokens off from the supply forever. Why it matters - A formal burn reduces the effective supply and can tighten token economics, which market participants often view as bullish. That narrative may be underpinning some of the heightened derivatives activity. Derivatives flow and on-chain signals - CoinGlass data shows Open Interest (OI) on HYPE rose 1.63% in the last 24 hours to $1.53 billion, signaling a larger notional value of active positions. - The OI-weighted funding rate has climbed to 0.0839%, indicating increased buyer-driven pressure in perpetual futures markets — another sign traders are positioning for upside. Technical outlook - Short-term charts are mixed. On the 4-hour timeframe, HYPE has been bearish after a roughly 4% decline over the past week, but it is holding above a key support near $26. - Momentum indicators: the daily RSI sits around 40 (below the neutral 50 but showing a fading bearish bias), while the MACD and signal line remain in a downtrend, suggesting bears still exert influence. - Price scenarios: if HYPE fails to hold the $26 level on a daily close, downside could extend toward the October 10 low near $20. Conversely, a daily close above $26 could give bulls the room to push toward resistance around $34 — particularly if the burn proposal is factored into markets. Bottom line The validator vote on recognizing the Assistance Fund HYPE as burned is a small-but-notable supply action that traders are already reacting to. Derivatives metrics point to growing bullish positioning, but technical indicators still show lingering downside risk if $26 does not hold. Watch the vote outcome and whether markets fully price in the potential permanent removal of 3.71% of the supply. Read more AI-generated news on: undefined/news