Hyperliquid’s native token, HYPE, is at the center of major market discussions after a bold proposal from DBA Asset Management suggested cutting its total supply by more than 45%. The move, announced by investment manager Jon Charbonneau, comes as one prominent analyst sees the token surging to $100 by the end of Q4 2025.
Hyperliquid’s Supply Cut Proposal
Charbonneau’s proposal, posted on X, outlines a plan to burn all unminted tokens allocated for future emissions and community rewards, while also eliminating tokens held in Hyperliquid’s assistance fund. This would effectively remove hundreds of millions of HYPE tokens from circulation, making the asset significantly scarcer.
Supporters argue that such a reduction would bring greater transparency to Hyperliquid’s valuation, improving its credibility compared to competitors. They believe that authorized but unused tokens create unnecessary uncertainty, which can lead to market mispricing. By aligning protocol economics with active circulation, the project hopes to win over both retail and institutional investors.
Hyperliquid has already seen explosive growth. The token recently hit a new all-time high of $58, a staggering 1,200% increase from late 2024 levels. Much of this momentum stems from strong demand for decentralized derivatives trading and expectations that supply-side reforms will push prices even higher.
Market Strength and Competitive Landscape
Hyperliquid continues to dominate decentralized derivatives, despite rising competition. Rival exchange Aster recently made headlines with a 1,500% surge, amassing nearly $870 million in total value locked (TVL) and generating over $17 billion in monthly perpetuals trading volume. Even so, Hyperliquid still leads in open interest and overall market activity.
However, not everyone supports the supply cut proposal. Community member Tobias Reisner argued that Hyperliquid already has efficient burn mechanisms tied to trading fees, making an additional supply reduction unnecessary. The debate highlights differing views on whether scarcity should be enforced via protocol design or driven organically by usage.
Analyst Calls for $100 HYPE by Year-End
Amid these developments, crypto analyst CryptoFrog has turned bullish, forecasting that HYPE could hit $100 by the end of Q4 2025. In his analysis, he emphasized the token’s resilience in holding key trendlines, even as competitors attract significant inflows.
The token is currently consolidating around $48, retracing from its recent highs. Selling pressure has added volatility, particularly after BitMEX co-founder Arthur Hayes sold $5.1 million worth of HYPE tokens. Still, broader ecosystem growth suggests sustained upside.
In a major development, MetaMask announced it will integrate Hyperliquid’s perpetuals trading directly into its wallet, enabling users to deposit USDC and trade seamlessly. This move could drive additional adoption and liquidity, strengthening the case for higher valuations.
Outlook
With rapid adoption in decentralized derivatives and a potential 45% supply reduction on the table, Hyperliquid is positioned for one of the most closely watched rallies in the market. If the proposal passes and demand continues to grow, analysts’ $100 year-end target may not be out of reach.