Hyperliquid executes $10.15 million HYPE token burn

Hyperliquid has executed a significant $10.15 million token burn of its native HYPE token. This move follows the protocol's activation of the AQAv2 framework in August, which allows 90% of interest earned on idle USDC to be returned to the protocol's Assistance Fund. On October 3, the protocol distributed $14.5 million in accrued interest, leading to the purchase and permanent burning of 112,580 HYPE tokens. The team retains $4.4 million in additional funds designated for future buybacks and burns.

Following these developments, the price of HYPE rose to approximately $93.4, surpassing previous resistance levels. Market indicators such as the Relative Strength Index (RSI) and Relative Vigor Index (RVGI) have shown bullish crossovers.

Separately, Hyperliquid Strategies, a digital asset treasury (DAT) associated with the blockchain, has seen its market capitalization exceed $3 billion. The treasury holds over 35 million HYPE tokens, valued at roughly $3.3 billion. Unlike many other DATs that function as passive vaults, Hyperliquid Strategies utilizes an active operating model that generates revenue to increase its HYPE reserves, contributing to a 251% increase in share value since the start of the year.