HYPE burn proposal may trigger a circulation revolution, aid fund holdings, or reshape the market landscape

【Blockchain Rhythm】On-chain data has revealed an interesting trend. Hyperliquid Assistance Fund holds 37,114,000 HYPE tokens, equivalent to $1.02 billion RMB. How outrageous is this number? It accounts for 13.7% of the total circulating supply — meaning one fund’s holdings are equivalent to one-seventh of the circulating market.

More importantly, the Hyperliquid Foundation recently proposed a burn plan. If approved by voting, these 37,114,000 HYPE tokens will be permanently removed from circulation and total supply. In other words, the market circulation will directly shrink by 13.7%. Currently, the total supply of HYPE across the network is only 1 billion tokens, with a market cap soaring to $7.406 billion USD, and the FDV reaching an astonishing $27.35 billion. Once the burn is confirmed, the reduction in supply could reshape the entire HYPE supply and demand landscape.

The Hyperliquid Foundation officially announced this on social media, stating that they will confirm through validator voting that the tokens in the assistance fund have been burned, completely removing this portion from the books. This is not just a numbers game — for token holders within the ecosystem, a sharp decrease in supply often means increased scarcity, which could lead to a market revaluation.