Hyperliquid has seen a significant expansion in its revenue sources with the activation of the AQAv2 framework in August.
As part of the agreement, 90% of the interest earned on idle USDC on the platform is directed back to the protocol. This yield is accrued on a 30-day cadence and automatically transferred to the Assistance Fund after eight days.
The protocol recently distributed the first interest accrued since the activation, resulting in $14.5 million in USDC being routed to the Assistance Fund.
In a significant move, Hyperliquid conducted one of its largest token burns in the last 24 hours. According to Onchain Lens, the protocol bought and burned 112.58K HYPE, valued at $10.15 million.
All funds from these buybacks are dedicated to open-market purchases and subsequent burns.
With $10.15 million already spent on token buybacks and burns, the team still holds $4.4 million for additional buybacks and burns.
Market Response to Deflationary Milestone
The market reacted positively to these developments, with HYPE breaking the $91 resistance and climbing to $93.7, erasing losses from earlier in October.
Currently, Hyperliquid is trading around $93.4, reflecting a 3.5% increase on the daily charts. The altcoin’s trading volume has also surged by 52%, indicating renewed market interest.
The price surge has significantly boosted upside momentum, with the altcoin’s Relative Strength Index (RSI) showing a bullish crossover and rising to 59.
Additionally, the Relative Vigor Index (RVGI) has also formed a bullish crossover, rising to -0.08. These crossovers indicate a shift in market sentiment favoring bulls.
Given the current market conditions, Hyperliquid is well-positioned for further gains. If the momentum continues, the altcoin could surpass the $94 resistance and aim for $98, potentially reaching the $100 mark.
However, the market faces a challenge as investors rush to the Spot market to capitalize on recent gains.
The Spot netflow has surged to $4.3 million on October 5th, indicating increased exchange inflows that could add pressure to the market.
Failure to absorb this pressure may lead to a reversal in the upward trend, potentially pushing HYPE back to $91 with $86 as a key support level.
Key Takeaways
- Hyperliquid conducted a significant token burn of 112.58K HYPE worth $10.15 million, fueled by the AQAv2 framework generating $14.5 million in revenue.
- HYPE surpassed the $91 resistance, climbing to $93 amid renewed market interest.